As the developed world curbs tobacco use - with such moves as the ban on smoking in public places in London, New York and Dublin - so the tobacco companies are shifting their focus to Asia and Africa.
"Bill and I want to highlight the enormity of this problem and catalyse a global movement of governments and civil society to stop the tobacco epidemic," said Mr Bloomberg.
Mr Gates and Mr Bloomberg are aiming to help governments with policies which have been shown to curb smoking, such as raising tobacco taxes and banning tobacco advertising.
The question is how effective $500m can be against the concerted efforts of the tobacco companies to expand their markets.
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