Corporate strategies the National Development Company

• Main Author: Reyes, Marita R.
• Format: text
• Language: English
• Published: Animo Repository 1997
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2249
• Institution: De La Salle University

BACKGROUND. Established in 1919, the National development Company (NDC or the company) is one of the oldest government owned and controlled corporations (GOCC) existing in the Philippine. It was first organized as a semi-private corporation and converted into a public corporation in 1936. The activities of NDC were carried put within the framework of a private enterprise system, venturing into such projects which the private sector was not willing or able to undertake and pulling out when others were ready to take over. NDC engaged in pioneering commercial. Industrial and agricultural activities in the pre-war period: cement, sugar refining, footwear, warehousing, tobacco, abaca, fibers, coconut, and packaging. Other undertakings were surveys of oil, iron ore, guano. Marble, and coal deposits, feasibility studies on numerous industrial projects. In the post-war period, NDC organized several other projects: lumber and saw mills, shipyards and dockyards, steel mills, pulp and paper mills, rice and corn production. A more pronounced role occurred during the Marcos administration when NDC was reorganized and recapitalized to start a bold public-led industrialization through the 7 major projects: copper smelter , phosphatic fertilizer, aluminum smelter, integrated smelter, integrated steel mill, petrochemical complex, integrated pulp and paper project, heavy engineering industries projects (only two of which materialized Philphos and PASAR) ASEAN Industrial Projects, large scale plantation crops projects, and small and medium scale industries financing projects called venture capital corporations. As government arm, it developed, financed, implemented, and damaged these projects. NDC also acquired and infused equity into several weak companies for rehabilitation CDCP, PICOP, and Herdis group of companies (Semirara Coal, TEC and RCP), and the National Steel Corporation, some of which turned and were later privatized during the Aquino and Ramos administration. The Aquino and Ramos administrations instituted reforms in the economy since 1986, including an intense privatization program which hoped, among other, to generate revenues tor the government which were used to pay huge debts inherited from the previous administration, and to improve the efficiency of public enterprises.