Development and Resources Corporation
Development and Resources Corporation (DRC) was a U.S. nonprofit active during the Cold War. It aimed to help rural areas in other countries by combining government development know‑how with private business skills. The goal was to modernize infrastructure and also influence local attitudes toward development. The idea drew on David E. Lilienthal’s experience running the Tennessee Valley Authority.
Founded in 1955 in New York City by Lilienthal and Gordon R. Clapp, with backing from Lazard Frères, the DRC sought to implement projects directly and on a regional scale. In the 1960s it expanded its reach, working in places like Colombia, Puerto Rico, Nicaragua, Haiti, Peru, Italy, Nigeria, Malaysia, Australia and other countries.
Colombia and Cauca Valley: The first project began in 1954 in the Cauca River Valley, where Lilienthal advised the Cauca Valley Corporation on flood control and hydroelectric plans. In 1957 the Colombian military ruler Gustavo Rojas Pinilla withdrew support, ending that development plan. The Cauca Valley Corporation was later revived in 1964 without Lilienthal’s influence.
Iran and Khuzestan: In 1956, the DRC proposed the Unified Development of the National Resources of Khuzestan, aiming to modernize the region with a system of dams on the Dez River, including the Pahlavi Dam. The tallest dam would be about 620 feet high, and the project would generate substantial electricity at a cost of around $160 million. In 1960 the Khuzestan Water and Power Authority (KWPA) was created, challenging the DRC and undermining its plans as Iran’s economy and politics shifted. The DRC’s influence in Khuzestan waned and effectively ended by 1979.
Vietnam: In 1966 President Johnson asked Lilienthal to help build a postwar development system in Vietnam. The DRC worked with Americans and Vietnamese in the Mekong Delta, focusing on flood control, pest control and agricultural improvements. The Tet Offensive in 1968 and Johnson’s decision not to run again reduced support, and the DRC left Vietnam in April 1970.
Back home in the United States: The DRC also influenced U.S. social programs. Lilienthal helped train Peace Corps volunteers in agricultural skills in California’s Imperial Valley. The firm supported Great Society projects, including engineering work in the New Jersey Meadowlands and in Alaska’s Ramparts River, intended to reduce poverty and create jobs.
Decline and dissolution: The DRC suffered its first loss in 1969 as Iran’s plans faltered. The 1970s brought ongoing financial struggles, with old projects losing money and new contracts proving hard to win. Brazil’s Sao Francisco River Valley project failed, and Iran’s Khuzestan plan ended in 1979 amid competition and political unrest. Lilienthal then dissolved the Development and Resources Corporation in 1979.
This page was last edited on 3 February 2026, at 13:48 (CET).