The Private Sector Development Vice Presidency (PSDVP) was launched in June 2003. It replaced the former Private Sector Development and Infrastructure Vice Presidency (PSIVP). Like its predecessor, the PSDVP was jointly organized by the World Bank and its affiliate the International Finance Corporation (IFC). PSDVP oversaw the following former PSIVP departments: the Private Sector Advisory Services (PSAS) and the Small and Medium Enterprise Department (SME). At its establishment, PSDVP consisted of the following joint IFC and Bank departments and units: the Investment Climate Department (CIC); the Private Sector Development Operations (CIO); and the Small and Medium Enterprises Department (CSM). SME functions and staff were transferred to the new CSM, and the PSAS functions and staff were transferred to CIC. The objectives of PSDVP included:

• enabling countries to build a favorable climate for investment and private sector growth;

• improving the enabling environment in client countries for corporate social responsibility (CSR), including gender and human rights; and

• improving the environment for privatization and state-owned asset management.

Michael Klein assumed the role of Director of PSDVP, and reported to Peter Woicke. Woicke oversaw PSDVP, serving in the dual role as IFC Executive Vice President and Managing Director for the World Bank.

In 2007, the PSDVP was terminated and its functions were transferred to the new joint Bank and IFC Financial and Private Sector Development Vice Presidency (FPDVP). The PSDVP departments and units were combined with the departments and units of the Bank's Financial Sector Vice Presidency (FSEVP) to form the new FPDVP.