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Jan Pieterszoon Coen

Why Nations Fail: The Origins of Power, Prosperity, and Poverty

Jan Pieterszoon Coen was the Dutch governor who transformed the Dutch East India Company’s inability to secure nutmeg and mace through agreement into a violent system of conquest and forced production. In 1621 he led a fleet to the Banda Islands, where the company killed almost the entire population and replaced autonomous communities with plantations designed to supply spices at fixed prices. The episode shows how the company’s commercial ambitions became instruments for remaking political and economic life across the region.

The Company’s Search for a Monopoly

The Banda Islands differed sharply from Ambon, where the Dutch had been able to intensify existing structures of tribute and forced labor. Banda consisted of small autonomous city-states governed through village meetings, without a central authority that could be coerced into signing a monopoly treaty or a tribute system the company could take over. Merchants from England, Portugal, India, and China competed there, and the Dutch lost access to spices when they would not pay as much as their rivals.

The failure of this initial plan led Coen to devise another. In 1618 he founded Batavia, on Java, as the Dutch East India Company’s new capital. Three years later, he sailed from Batavia to Banda with a fleet, shifting the company’s effort from commercial competition to direct control of the islands and their production.

Conquest and Plantation Rule

Coen’s 1621 expedition killed most of Banda’s population, estimated at about fifteen thousand people. The islands’ leaders were killed along with the rest; only a few inhabitants were left alive, enough to preserve the knowledge needed to produce mace and nutmeg. This destruction removed the political communities that had prevented the Dutch from imposing a monopoly by treaty.

After the killings, Coen established the structure of a plantation society. The islands were divided into sixty-eight parcels and granted to sixty-eight Dutchmen, mostly current or former company employees. The few surviving Bandanese taught the new owners how to produce the spices. The owners could obtain enslaved people from the company to populate the emptied islands and work in production; the crop was to be sold back to the company at prices it fixed.

Commercial Gains and Regional Consequences

The system achieved the company’s immediate objective. By the end of the seventeenth century, the Dutch had reduced the world supply of the spices by about 60 percent, while the price of nutmeg had doubled. Those figures mark the commercial success of the monopoly, but they stand alongside the killing of roughly fifteen thousand people and the creation of institutions that condemned Banda to underdevelopment.

The company’s strategy extended beyond the islands it directly conquered. Across Southeast Asia, states that had participated in commercial expansion since the fourteenth century began to turn inward; some abandoned trade to avoid Dutch interference. In 1620, Banten cut down its pepper trees in the hope of keeping the Dutch away. Other rulers likewise stopped growing export crops rather than risk conflict. Coen’s conquest thus formed part of a broader reversal: the pursuit of a company monopoly made commerce dangerous, and self-sufficiency seemed safer than engaging with it.