In my answer here, I will only address the cost of this project, and how it can be financed:
"It now takes less than a week for global currency markets to exceed the entire annual volume of world trade in goods and services, distorting their real value and resulting in trade that is neither free nor fair."(1)
In 1972, James Tobin, who would eventually win the Nobel Prize for economics in 1981, suggested a tax on international currency transactions.(2)
This would help correct the imbalances that result in trade that is niether free nor fair, and even a small fraction of 1?ax on currency speculation would be adequate to elimate world poverty by means of direct aid.
Surprisingly, Jacque Chirac opened the World Economic Forum with a similar suggestion in 2005 - since the total cost of eliminating
world poverty is only in the 100s of billions of US$, even a 0.1?ax on speculative trades will raise enough cash to completely eliminate world poverty within a year.
(the data is in a state of rapid flux, but the numbers are always increasing, there's the rub!)
- at least 3 factors would be accomplished:
(1) direct aid - cash or the nearest equivalent to the needy
(2) counseling - to ensure sustainability once the intial obstacles of need are overcome
(3) a correction of the gross imbalance in currency values that are the result of pure speculation by those who are wealthy enough to bank large amounts of cash, and move it quickly.
Of course this idea will be opposed by those who do have the cash and the ability to move it quickly, thus destroying the possibility for the vast majority of creatures on this planet to enjoy a decent life.
"Needless to say, this does not appeal to large banking interests on Wall Street. It is also seen as a threat in London, which controls a third of the world's currency trade. Yet it has strong supporters, including a former president of the World Bank"
The Tobin tax...
one of the most intriguing potential ways to stabilize UN financing without damaging sovereignty or distorting market flaws."
President and Executive Director,
The World Bank, 1986-1991
During the last rivival of Tobin's idea, Rupert Cornwell wrote for the UK Independent
Mr Tobin isn't the first liberal economist to have worried over the risks posed by speculative flows to growth and and the financial stability on which that growth depended. "When the capital development of a country becomes a byproduct of the activities of a casino," Keynes wrote 65 years ago, "the job is likely to be ill done." But even the author of The General Theory is hard pushed to match the current celebrity of James Tobin.
The proposal would require unprecented international cooperation: implementation seems daunting. But the challenges are clearly defined and neatly summarized by the Hallfax Initiative(3) on their website..(see URL below)."