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This study aims to analyse the development of human well-being and sustainable development from a long-term perspective. Though often used, these concepts are generally ill-defined. This chapter proposes to clear the decks by proposing unambiguous definitions of well-being and sustainable development. This emphasis on definitions and measurements echoes international efforts to develop standardised measurement protocols that may help society (and policy makers in particular) to assess the extent to which a society is moving in a more sustainable direction. The framework adopted in this chapter (the so-called ) charts the well-being of a country at a specific point in time, and also reveals the extent to which the precise way such well-being is generated hampers the well-being of later generations or people elsewhere on the planet. Natural capital is a particular focus, inasmuch as this is a vital resource on which, in the end, all life depends. In this analysis of two centuries of well-being and sustainable development, the institutional evolution of society over time also plays a prominent role.

This chapter opens with an overview of Dutch society midway through the nineteenth century, showing that at the time poverty was the main social problem. This is followed by a comparison between the benchmark years 1850 and 2010. The comparison shows that over the course of the intervening 160 years, Dutch society realised a vast increase in well-being. Extreme poverty was gradually eliminated, though in so doing sustainability issues emerged. Economic modernisation made inordinate demands on natural capital. After 1960, in particular, economic growth had an increasingly negative impact on human well-being and on sustainability.

In this study, natural capital occupies a special place. After all, the way natural capital is exploited is crucial for issues of well-being and sustainability. This chapter analyses the exploitation of natural capital in the Netherlands around 1850. It deals with three categories of resources produced by natural capital.

First, organic resources (including grains, potatoes, cattle and milk) and the associated supply chains in agriculture and foods (farming systems, food production and food consumption).

Second, mineral subsoil resources (in particular sand, clay and gravel) and the associated supply chains in construction (housing construction, water management, and infrastructure).

Finally, fossil subsoil resources (in particular turf and coal) and the associated energy supply chains (industry and households).

The exploitation of natural capital took place in a variegated landscape possessing great biodiversity and an agricultural economy that provided plenty of room for population growth.

Well-being is achieved by means of four resources (that is, the four capitals: natural, economic, human and social) of which natural capital is the basis. The previous chapter emphasised the natural capital of the Netherlands and the way this was exploited with the aid of the other capitals. This chapter asks what the outcome of this exploitation was in terms of well-being. What were the most important issues around well-being in the Netherlands at the middle of the nineteenth century? In terms of present-day norms for extreme poverty, around 21% of the population at that time lived in extreme poverty. From a present-day perspective, extreme poverty is among the most important issues in well-being around 1850.

A study of newspaper articles between 1830 and 1850 reveals that from a contemporary perspective too, extreme poverty was one of the most important societal issues of the time. The poor led not only a meagre, but also a vulnerable, existence. The latter also applied to a large part of the Dutch population. It had to cope with the elements in their extreme forms: heat waves, bitter cold, violent storms, heavy rains and hailstorms.

A component of well-being specific to the Netherlands as a country located in the delta of multiple rivers was the struggle against water. This was waged along three main fronts: the management of inner (fresh) water, the struggle against the sea, and the interminable fight with the rivers.

Finally, by present-day lights, in the past all the cities in the Netherlands were filthy and polluted with organic waste, including human and animal faeces. This was in large part responsible for low life-expectancy and poor public health. From a present-day perspective this touched on an important aspect of well-being.

At the time, extreme poverty could be fought by, among other things, economic growth. That demanded another approach to the exploitation of natural capital and accordingly to innovation in the three main supply chains.

In the agriculture and foods supply chain (one of the three main chains in this study, based on organic raw materials) experimentation with new techniques did take place (among other things the use of guano as artificial fertilizer) but this did not lead to practical innovations.

In the supply chain of building materials and construction (the second main chain based on mineral subsoil resources) the construction of a national road system amounted to an important innovation in road infrastructure. Hardly any innovations were undertaken in the fields of water management and housing construction. It is remarkable that little was done about the social problem of organic wastes, including human and animal faeces. Public hygiene was not one of the most important societal issues of the time.

In the energy supply chain (the third main supply chain based on fossil subsoil resources) innovations were equally lacking, in particular applications of steam power. Up to 1850 the Netherlands did not industrialise on the basis of steam and coal.

The previous chapter reported a dearth of innovation regarding the exploitation of natural capital around 1850. This chapter deals with the dynamics of the institutional quadrants at the time (see Chap. ). In a number of respects the 1840s marked the start of a new phase. ‘Civil society’ awoke, mainly thanks to the contribution of younger generations of Netherlanders. Due to the abdication of King William I, the political institutions required a makeover. Economic institutions were under a great deal of pressure due to the emerging liberal climate and the liberalisation of the world market. In the domain of technology, new institutions blossomed with the emergence of civil and mechanical engineers and other professional groups. These developments had not yet led to fundamental social change. The Netherlands remained a mercantile capitalist, colonial and agricultural nation.

This is the context in which the well-being monitor for 1850 must be placed. This monitor is the ‘benchmark’ for this study, the standard against which the monitors for 1910, 1970 and 2010 are evaluated.

On the basis of the monitor and from both a contemporary and a present-day perspective, three important sustainability problems can be discerned: material welfare (poverty), the institutional environment (political instability) and social capital (little trust in political institutions). In addition, from a present-day perspective a series of issues is problematic: poor public health, nutrition and lower-class housing (the personal characteristics), insufficient innovations (economic capital), a lack of qualified labour (human capital) and the immoral “culture system” in the Dutch East Indies (trans border effects). The state of water management also gave cause for concern. Both from contemporary and present-day perspectives the Dutch delta was vulnerable.

Fundamental changes in politics, economy, technology and ‘civil society’ took place in the Netherlands in the second half of the nineteenth century. The eminent politician Thorbecke guided the nation through the constitutional reforms around 1850. A new constitution put an end to the power of the king and shifted political power to parliament. The Dutch economy modernised thanks to the liberalisation of trade, an entrepreneurial spirit and other new economic conditions. It was moreover embedded in a new culture that regarded technological innovations almost by definition as social progress. A dynamic ‘civil society’ was populated by emergent professionals, including engineers and hygienists.

In this chapter, with the help of the well-being monitor, we explore the changes in quality of life ‘here and now,’ ‘later,’ and ‘elsewhere’ for the period 1850–1910. Extreme poverty began to decline significantly, while the burden on natural capital and the natural environment increased. The question is whether this increased burden was problematic and whether it was in fact problematized. We subsequently focus on natural capital, that in this study is seen as the basis of well-being. We make an inventory of some of the important shifts in the production of raw materials and the derivative material flows in the period between 1850 and 1910. This overview isolates the main themes that are worked out in greater detail in the following chapters.

The chapter analyses the fundamental changes in the agriculture and foods supply chain between 1850 and 1910 and investigates the consequences for the food supply, in particular for the poor.

Initially, agriculture profited from the liberalisation of international trade. The mixed crop tillage farms in the region of the large rivers and on the sand grounds commercialised and specialised themselves. After 1880, cheap, especially American, grain imports cast Dutch agriculture into a profound crisis. In part because of this crisis a number of innovations were introduced, like the use of artificial fertiliser and the founding of agricultural cooperatives. In addition, common lands were to disappear and large tracts of heathland were to be reclaimed.

The 1860s proved a turning point for the food processing industry. The revival of the domestic market in these years was a key factor. Also, a number of sectors oriented to foreign markets like the potato starch and the sugar beet industry flourished. The steam engine gained ground at the cost of horse-mills and windmills. Moreover new sectors like the margarine and the dairy-processing industry were established.

The modernisation of agriculture and the food processing sector had contributed to the improvement of the food situation. That also resulted from changes in the tax structure, whereby taxes on food were lowered and from increased welfare. Quantitatively there was sufficient food at the beginning of the twentieth century, also for the poor. Potatoes and grain were still the main menu of the majority of the populace. The problem now shifted to food quality.

The chapter analyses the radical changes in the supply chain of building materials and construction between 1850 and 1910. It investigates the consequences for the four building challenges in this period: public hygiene, public housing, the struggle against water and the development of road infrastructure.

The hygienists succeeded in getting the issue of urban pollution due to faeces and other organic waste on the societal agenda. Despite this, the effect of the movement on the health of the poor and workers in this period was still minimal. Realising the hygienist program demanded firm municipal policy and large investments. Moreover there was exuberant debate on the nature of the measures to be taken.

Public housing too became a significant political issue thanks to the efforts of the progressive bourgeoisie and socially conscious entrepreneurs. The most important result was the passing of the Housing Law of 1901, that provided the future framework for the condemnation, dispossession and improvement of dwellings.

In the field of water management, the government public works agency (Rijkswaterstaat), intensified its struggle against regularly recurring river floods. An impressive program of river normalisation was carried out under its leadership.

Successive governments would devote much attention to infrastructure with the aim of improving welfare, reinforcing the position of the maritime harbours and improving the accessibility of remote regions. The construction of a network of canals and railways guaranteed the spatial integration of the Netherlands and had far-reaching consequences for the modernisation of the economy.

The chapter analyses the radical changes in the supply chain of fossil fuels between 1850 and 1910. It does this in relationship to the development of industry and investigates the consequences for the factory system, the environment and class relations.

The modernisation of the economy was an important precondition for the increase in welfare and the decline of extreme poverty. It involved agriculture and nutrition, infrastructure and transportation, industry and steam technology. Agriculture, foods, infrastructure and transportation were discussed in previous chapters. Industry and steam technology are the focus of this chapter.

The transition to coal and steam was accomplished in this period. It was typical of the Netherlands that the development of steam technology did not in the first place lead to the establishment of factories, but to the modernisation of workshops and small firms. Craft production remained dominant. To be sure, labour relations became more business-like due to liberalisation and sharp competition, especially in the cities, but it never came to social disruption or class conflict.

The emergence of steam technology raised questions about the safety of the vicinity and the nuisance inflicted on residents. A Steam Law and a Steam Inspectorate were relied on to minimise the risks of possible explosions. The nuisance law was intended to prevent irritating smoke, smell and vibrations as far as possible. However complaints about nuisance were almost never sufficient cause to refuse a permit. In most cases the interests of industry prevailed.