75 Years Since the Bank’s First Development Loans

The World Bank (WB) was born in 1944 to support European reconstruction after World War II. But when did it begin to expand its operations to support the world's development?

In 1948, Chile was the first country to receive from the WB two loans focused only on development. These were the fifth and sixth loans (the first four were for the reconstruction of European countries), and its objectives were the construction of the first hydroelectric power plants in Chile and supporting the purchase of equipment to increase the efficiency of agriculture production.

Throughout its 75-year history, the core of the relationship between Chile and the WB is to develop innovative solutions to complex challenges in key areas for the country's progress.

Partners for global development

"Chile has had an outstanding trajectory on its path to development, experiencing several decades of strong economic dynamism and poverty reduction. The knowledge we have gained by working together has benefited countries around the world and inspired development," said Virginia Brandon, World Bank Resident Representative in Chile.

Over the past decade, however, growth has slowed, and productivity and equity progress have stagnated. This, combined with the impact of recent global crises, has left Chile and the world facing a triple crisis: social, economic, and climatic.

Chile has conditions that make it a strategic partner to address these challenges. Therefore, we are working together on crucial issues such as the impacts of climate change, green growth opportunities, better access to quality public services, among others," explained Brandon.

"To reshape development and move towards greater sustainability and inclusion, international cooperation is more necessary than ever. Chile has conditions that make it a strategic partner to address these challenges. Therefore, we are working together on crucial issues such as the impacts of climate change, green growth opportunities, better access to quality public services, among others," explained Brandon.

A track record of innovation

Visit the interactive timeline showcasing the World Bank Group's support and partnership with Chile.

Critical investments for Chile's economic development such as energy, mining, road and port infrastructure, have benefitted from WB collaboration throughout history.

Here are a few project highlights over our 75-year partnership:

In 1959, the Bank financed the Rapel hydroelectric plant, the first large-scale hydropower plant in Chile. After more than three decades of working together in the construction and maintenance of highways, in 2002 the WB supported the development of the highway privatization model.

Human development has been central to the WB's collaboration with the country. In 1965, Chile received the first WB loan for adult vocational training, which was also the first financing for human resource development in Latin America. In 1999, the Millennium Science Initiative boosted the creation of more than a dozen world-class research centers.

In addition, in 2003, the Bank supported the implementation of the Chile Solidario Program, a social protection system to overcome extreme poverty, which has served as an example for countries around the world.

Chile has been a pioneer in addressing climate change, and the WB has supported these efforts for sustainable development since its beginning. Here are some of those initiatives:

• In 1992, we supported the country in laying the foundations for its environmental resource assessment system.
• In 2002, the Chacabuquito hydroelectric project enabled Chile to achieve the world’s first verified reductions in greenhouse gas emission.
• In 2014, the Bank began the design and preparation of carbon pricing instruments in the energy sector.
• In 2015 started the project to strengthen the capacity for water resources management and public infrastructure planning and concession, which led to the creation of an Undersecretariat for Water Resources.

Through this collaboration, the World Bank has learned important lessons that can be shared with other countries facing similar development challenges. As we move toward inclusive and sustainable development, Chile is as a strategic partner for innovative and cutting-edge solutions to #ReshapingDevelopment.