1970s - BROADENING OUR SCOPE

Decade 2
1970s — Broadening Our Scope


We expanded the range of our activities as we began to work with financial institutions and to offer standalone advisory services.
 

1971
IFC Capital Markets Department created to strengthen local banks, stock markets, and other financial institutions—which eventually become IFC’s largest area of emphasis. Watch video

1972
First advisory services: IFC sends two staff and 12 consultants to Jakarta for two years to help build the country’s first securities markets.

1972–1974
First field offices (Jakarta and Nairobi)

1973
First housing finance project: IFC becomes a founding shareholder in start-up Davivienda of Colombia, then adopts that same model in 1978 with HDFC in India. Both in time become industry leaders.



 

1974
Korea’s LG Electronics begins its international breakthrough with a $17.3 million IFC loan-and-advice package, soon becoming one of the first globally competitive firms from a developing country. IFC continues financing the company until 1998.

1976
First SME finance project: $2 million for Kenya Commercial Bank (KCB) to on-lend to smaller local companies, with advisory services funded by the Commonwealth Secretariat. Seven years later, all 12 KCB subloans were fully repaid, financing the borrowing firms’ profitable expansion.

 

GLOBAL CONTEXT
 

1973: OPEC oil crisis begins vast wealth transfer to oil-producing nations
1973: Chile begins gradual transformation from statist to a liberalized, world-integrated economy
1975: End of Vietnam War
1975: Microsoft founded
1976: Apple founded
1979: Deng Xiaoping begins reforms to open China’s economy