Legend has it that Amsterdam was founded by two fishermen and a seasick dog. The dog jumped a ship to deposit the contents of his stomach and the two fishermen became the founders of Amsterdam. However, the more scientific version of the city’s founding states that Amsterdam was recorded as a city not earlier than the 13th century. It developed around a dam in the Amstel River and the settlement grew up on the site; hence the name of Aemstelledamme and finally Amsterdam.

After then, the city grew rapidly owing to its geographic setting on the mouth of the large rivers emptying into the sea, making it easy for Amsterdam to become a key point of seaborne trade between the North and Baltic Seas and southern Europe. By the end of the 16th century, Amsterdam enjoyed its Golden Age which marked Amsterdam’s commercial success and which would last in the late 17th century. During the Golden Age, Amsterdam was the staple market of the world due to its establishment of Dutch East India Company which brought spices, cloth, tea, coffee, sugar, pepper, and many other commodities from Asia to Europe. Meanwhile, the Dutch also expanded its power to Indonesia and Sri Lanka in a form of colonization. The city of Amsterdam itself was a destination of a stream of immigrants that the city’s expansion was undertaken; the concentric pattern of canals was constructed to be Amsterdam as we seen today.

The explosive economic growth of Amsterdam faced its decline in the end of the 17th century following the French occupation. Although the city lost its position as the main port, it managed to retain the financial center of Europe. Industry came then to play a significant role in the city’s prosperity.

The emergence of WW II hit Amsterdam so hard when the German invaded and committed the Jewish extermination. During the wartimes, the city was shrouded with social unrest and economic depression. It was not until May 1945 that the city was finally liberated.

In the postwar period, Amsterdamers spent their time recovering the city’s economy. And successfully, Amsterdam turned to its great prosperity again between 1950s and 1960s. Apart from being a favorite tourist attraction in Europe, Amsterdam also attracts foreign businessmen from around the globe, enhancing the wealth and also the lively rhythm to the city.