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The region is the center of culture , economy , education and government of the Philippines. NCR is one of the 12 defined metropolitan areas in the Philippines according to the National Economic and Development Authority.  Designated as a global power city , NCR exerts a significant impact on commerce, finance, media, art, fashion, research, technology, education, and entertainment, both locally and internationally. It is the home to all the consulates and embassies in the Philippines, thereby making it an important center for international diplomacy in the country.
Its economic power makes the region the country's premier center for finance and commerce. NCR accounts for 37.2% of the gross domestic product of the Philippines. 
The region was established in 1975 through Presidential Decree No. 824 in response to the needs to sustain the growing population and for the creation for the center of political power and the seat of the Government of the Philippines.