Slavoniaunderwent many radical changes in the 18th century. After the Srijemski Karlovci peace treaty and under Austrian rule, a new era began in the history ofSlavonia. By the decree of Maria Theresa in 1745, three counties inSlavonia, Virovitica, Požega and Srijem, were placed under the administration of the Croatian Parliament and a governor. The Military Border came under the authority of the Royal Military Council. This political border contributed to the picture of a divided society inSlavonia. On one side, there was a military regime in Krajina, with a free peasant-soldier. On the other side, there was a civilian regime in the Province, with a dependent peasant-serf. The one thing that bound these two territories was the enlightenment policy of the two Habsburg monarchs Maria Theresa and Joseph II.Through the worldview of enlightenment, many similarities can be seen between the development of the two Slavonian territories and the wider context of European development at that time. These European influences are most significantly seen in two particular aspects of Austrian rule, economic and social reforms. In order for them to be successful, one had to influence the awareness of an individual. This was done in 1774 by imposing compulsory education for all children in Slavonia.A common denominator which the linked the two territories ofSlavonia, prior to the introduction of educational reforms, was economic underdevelopment. The process of change was slow and took place alongside agrarian reforms. In order to conduct these reforms as successfully as possible, the central government had to deal with the low moral standards of people, prone to laziness, alcohol, lawlessness and robbery. Many of the legal regulations testify that the implementation was difficult but the outcome was successful.The changes were gradually accepted during 18th and 19th centuries, unifying all parts ofSlavoniaon the basis of economic and moral progress.