Glo. p. xii; Mapa; Tab.; Sum. (En)

The Private Development Corporation of the Philippines (PDCP) was established in 1963, based in part on an A.I.D. loan of P27.5 million in quasi-equity. The objective of the Government of the Philippines was to establish a privately owned and controlled development finance institute that would operate more efficiently and under less political pressure than would a government institution and that would be more successful in attracting both foreign and domestic long-term capital. These expectations were largely met. The economic volatility of the 1960s adversely affected PDCP operations. Especially important were inflaction, adverse balance of payments and hence growing external debt, and the declining value of the peso (all associated with the two oil shocks). These problems were compounded by the limitations of the import-substitution policies pursued by the Philippine Government, including interest rate controls which denied to interest its credit-allocating role. Nevertheless, by the end of 1982, assistance had been provided to over one thousand projects, with a peso value of over P5 billion. By any measure, the relatively small sum provided by AID was associated with a multiple expansion of various aspects of the Philippine economy. Further, PDCP's portfolio remained relatively problem free. PDPC's institutional strength has benefited from continuity of management and very good in-house staff training