Technopolis Part I: From Corporation to Country — the Dutch East India Company, PayPal, & Facebook
This piece is part of a multi-part series called “Techopolis” that explores the history of dominant mega-corporations that have ascended their status from a business to statehood, with a particular focus on minting their own coins, the power they have gained, and what the future could look like if it happens again.
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From Corporation to Country
What do the likes of Facebook and PayPal have to do with the Dutch East India Company (VOC)? It turns out, more than you might think.
It’s been a long time in the making — a dominant multinational company becoming a state — a company that bears a coat of arms, has its own flag, raises its own military, and mints its own coin.
The first to do so was the Dutch East India Company. It was history’s first example of a joint-stock company, which meant that different owners could buy and sell the stocks to fund the company. In turn, the stock holders could make a profit on the success of the company.
The VOC enjoyed a 21-year monopoly for trading in Asia. In that time, the VOC waged war and imprisoned others.
World’s First Corporate Currency
From the time the Dutch East India Company issued its coinage in the 17th and 18th century, to Meta (Facebook) trying and failing with Diem (Libra), large, private, corporations have been vying for statehood, which has included minting currencies, for 400+ years.
How did all of this begin? What lines were blurred between corporate structure and statehood. And most importantly, what can the past teach us about the implications of the future?
What started as a good thing might not stay that way forever.
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Merchant or Ruler
“In debating the utility of fortifications, VOC leadership often displayed a strategic mentality more befitting of a state than a merchant. Lurking beneath the surface of the debates on fortification was always the larger, uncomfortable question of the true nature of the Company: ruler or merchant?” — The Company Fortress: Military Engineering and the Dutch East India Company in South Asia, 1638–1795, Amsterdam University Press, 2020.
In the 17th century, the Dutch East India Company was attempting to woo its trading partners in present-day Asia and Eastern Europe. Much like data is the largest commodity today, spice, textiles, and tobacco were the most valuable commodities of the 18th century.
Ships filled with fabrics such as salt and tea entered the ports of India, which was one of the most prominent economies of the time.
The pursuit of these goods gave rise to a fresh form of currency, and ultimately, these very coins played a pivotal role in financing the very bedrock of the Dutch Empire.
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Coins Finding Acceptance in the Markets
Vessels once laden with hefty fabrics like woolens were soon supplanted by silver and gold coins, which found greater acceptance in the nascent markets they were venturing into.
The Dutch East Indian Company minted these coins themselves. However, VOC’s right to mint its own coinage was not originally granted under the initial charter set forth in 1602 by the Dutch government. (Ward, Kerry. Networks of Empire : Forced Migration in the Dutch East India Company, Cambridge University Press, 2008.).
Minting of the coins violated the VOC’s limits of sovereignty, but nothing was done to stop them. The VOC knew where the line was, and that they could cross that line.
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The Dutch East Indian Company’s (VOC) power was close to being a state. It possessed:
- 40 warships: To put this into perspective, the amount of warships would put the VOC higher than 70% of the world’s naval arms today
- 10,000 soldier private army: That is the same amount of soldiers that the present day Republic of the Congo has
- The ability to mint its own money: Only countries of the world, and an increasingly larger number of cryptocurrency protocols, have this ability. However, for most of the world’s history, only countries had the power to mint their own money
VOC Mentality
Another part of the the transition from corporation to statehood is the mentality.
The VOC mentality was marked by its focus on profit maximization, exploration, and expansion.
The company pioneered joint-stock investments, allowing individuals to invest in trading voyages, spreading both risk and reward. This financial innovation fostered a culture of risk-taking and innovation.
Corporate Identity or Flag
The company had a logo with a big ‘V’ in the middle, an ‘O’ on the left, and a ‘C’ on the right. This might have been one of the earliest logos recognized worldwide for a company. This logo appeared on different things the company used, like cannons and coins.
The logo had the first letter of the city where the company was based at the top. People admire the logo for being simple, clear, and timeless, with a balanced and meaningful design.
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The Beginning of the End
In the late 1700s, the company faced problems with illegal trading, dishonest behavior, and rising expenses. Because of these issues, the company went broke and officially closed down in 1799.
The government of the Dutch Batavian Republic took control of the company’s property and debts. The places that the company used to own later turned into the Dutch East Indies. Throughout the 1800s, these territories grew to cover all of Indonesia. In the 1900s, these lands became the Republic of Indonesia.
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A Present Day VOC
Similar to the VOC, which turned from a corporate venture into a full-fledged state, the end-goal question often rises about the modern tech companies — Facebook, Apple, Twitter (X), PayPal, Alibaba, Tencent — where are they headed?
Will we be living in a Westworld-like construct with a simulation filled of generative agents?
Many of the aforementioned companies produce more than the GDP of a single country. These are just several companies in what has been a long history of dominant companies whose operations and motives have resembled states.
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Technopolis, inspired by Neil Postman’s 1993, Technopoloy, refers to a cultural state where technology assumes a dominant role, shaping not only practical aspects of life, but also deeply influencing societal values, beliefs, and thought processes.
