In the introductory chapter, I develop the question that inspired my research: Why certain manifestations of historical imperialism are associated with positive developmental outcomes while others are blamed for persistent underdevelopment. I introduce the concepts of extractive institutions and military colonialism: the forceful recruitment in the military of borderland peoples to defend the territorial integrity of the state. Chapter 1 also presents the empirical puzzle that motivates the focus of the three main empirical chapters (4–6). It reveals that modern-day access to public goods changes precisely at the line of demarcation between the formerly civilian and military administered areas along the southern borders of the Habsburg Empire, a line that stretched for over three centuries through the territory of modern-day Croatia, Serbia, and Romania.