The Legacies of Extractive Institutions: the Case of Military Colonialism

• In Event: Politics and History & MENA Virtual Poster Session
  In Virtual Poster Session: Politics and History Virtual Poster Session

Abstract

Extractive imperialism is among the most cited factors for the underdevelopment of former colonies. Colonial legacies often imply weak institutions including insecure property rights, lack of political participation, and under-provision of public goods. In some instances however, colonial legacies are associated with subsequent economic growth. The author argues that the intensity of imperial investment, the transformation and/or reorganization of local societies, and the use of coercion are key determinants in shaping these developmental legacies. The article uses a unique form of imperialism to illustrate this argument. The Habsburg Empire maintained for centuries military colonies along its southern border, where local populations provided military service in exchange for land. Using a geographic regression discontinuity design, the author shows that municipalities in modern day Croatia within the former military colony have demonstrated consistently less access to public goods, lower interpersonal trust, and weaker trust in formal institutions.

Author

• Bogdan Gabriel Popescu, Bocconi University