Development and Resources Corporation

Development and Resources Corporation. Founded in 1955 by former Tennessee Valley Authority chairman David E. Lilienthal and Gordon R. Clapp, the corporation was a pioneering private enterprise dedicated to international economic development. It specialized in providing technical assistance and comprehensive resource management planning to governments in the developing world, operating as a for-profit consultancy. The organization worked on major infrastructure and agricultural projects, particularly in regions like the Middle East and Latin America, before ceasing operations in 1979.

History

The corporation was established in the post-World War II era, a period marked by the rise of decolonization and increased focus on foreign aid through initiatives like the Marshall Plan. Lilienthal and Clapp conceived the venture as a way to apply the integrated regional development model of the Tennessee Valley Authority to other nations. Initial funding and support came from entities such as the Rockefeller Brothers Fund and the Ford Foundation, with early contracts secured in Iran under the Shah. Throughout the 1960s and 1970s, it expanded its operations significantly, advising governments across Asia, Africa, and South America. The corporation's activities gradually wound down in the late 1970s, influenced by shifting global economic conditions and the death of Lilienthal in 1981, leading to its formal dissolution.

Operations

The corporation functioned as a private contractor, entering into agreements directly with national governments or international agencies like the World Bank and the United Nations Development Programme. Its methodology emphasized integrated resource development, focusing on the synergistic planning of water, land, and industrial resources within a specific geographic region. Core services included conducting extensive feasibility studies, designing master plans for regional development, and providing on-the-ground management for large-scale projects. Teams of experts, often recruited from backgrounds in the U.S. federal government or academia, would be deployed to client countries for extended periods. This hands-on approach covered diverse sectors including irrigation, hydroelectric power, agricultural extension, and vocational training.

Major projects

One of its most significant and longest-running engagements was in the Khuzestan Province of Iran, where it developed a comprehensive plan for the Khuzestan region, overseeing dam construction, irrigation networks, and agricultural modernization. In South America, the corporation conducted a major development study for the Caquetá River basin in Colombia and advised the government of Cali on regional planning. In Africa, it prepared a master plan for the development of the Awash River valley in Ethiopia. Other notable assignments included advisory work on the Mahaweli River project in Sri Lanka, then known as Ceylon, and various agricultural and water resource studies in countries such as Nigeria and Côte d'Ivoire.

Corporate structure

The corporation was headquartered in New York City, operating as a C corporation under Delaware law. It was governed by a board of directors that included prominent figures from industry, finance, and academia, such as John J. McCloy. David Lilienthal served as chairman and chief executive officer for most of its existence, with Gordon Clapp as president. The company was organized into regional divisions and project teams, staffed by a mix of permanent employees and short-term specialist consultants. Financing was derived from consulting fees, equity investments from its founders and directors, and grants from philanthropic foundations, rather than relying on public stock offerings.

Impact and legacy

The corporation is recognized as a seminal forerunner to modern private sector development consultancies like McKinsey & Company and the Boston Consulting Group in the international arena. Its work demonstrated the potential for applying large-scale, New Deal-era planning principles to the challenges of the Global South. The integrated regional development approach it championed influenced subsequent projects funded by the United States Agency for International Development and multilateral banks. While criticized at times for its top-down methods and close association with certain regimes, its technical reports and planning frameworks left a lasting imprint on national development strategies in several countries. The papers of David Lilienthal, housed at Princeton University, provide a key archival record of its operations and philosophy.

Category:Economic development Category:Defunct companies based in New York City Category:International development organizations