The Peoples Democratic Party was formed on 28th July, 1998 and formally launched on 31st August, 1998. It was one of the three parties registered by the Independent National Electoral Commission (INEC) for the 1999 elections.

Socialism is an intermediate or transition stage between capitalism and communism. It is both an economic and political concept. As an economic concept, socialism means an economic system in which the means of production (i.e land, labour, capital) are controlled mainly by the state. Most economic activities in a socialist state are performed by the government and its agencies.