Culture Secretary John Whittingdale said the playwright was "one of our greatest literary exports".
The initiative will include working with young people without access to school in developing countries.
The British Council's Sir Ciaran Devane said the project would reflect Shakespeare's "global impact".
Speaking in the Houses of Parliament at the launch of Shakespeare Lives, Mr Whittingdale emphasised the playwright's cultural significance and international influence.
"Shakespeare is a major driver of tourism and also an important player in our export market. And the creative industries which he towers over are a huge part of our economy," said Mr Whittingdale.
"It is very hard to overstate the scale and scope of his reach."
Partners in the 400th anniversary project include the National Theatre, Royal Shakespeare Company, Shakespeare's Globe and the BBC.
There will be performances, publications, films, broadcasts, online events and festivals.
Schools in the UK and around the world will be given resources and video clips, exploring themes such as "global citizenship".
But there will also be an alliance with Voluntary Services Overseas (VSO) to use the Shakespeare events to reach those young people who are excluded from education.
Despite a millennium pledge for universal primary education, there are about 58 million children who have no access to school - mostly in sub-Saharan Africa.
There are an estimated 250 million young people around the world who are unable to read or write.
"When millions of children cannot read, they become cut off from learning those lessons that literature can offer," said Philip Goodwin, VSO chief executive.
The exercise in cultural "soft power" will include events in the United States, Bangladesh, Malaysia, New Zealand, Ethiopia and the United Arab Emirates.
Sir Ciaran, British Council chief executive, said the playwright was "one of the most enduring examples of cultural impact and relations".
He said the "genius" of Shakespeare's language had given "people from all walks of life a platform for self-expression".

The Stephensons single-decker was a mile off the local bus route and must have been driven down a farm track, said farmer James Mizen.
Mr Mizen said a bus mechanic knocked at the door of his Thaxted, Essex, farmhouse to tell him a vehicle was stuck on the property.
Stephensons declined to comment on the incident. It is understood the bus did not have passengers at the time.
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Mr Mizen said: "The mechanic said the bus was on our muck heap.
"He must have gone down a no-through road, down a single track road, ignored the 'no unauthorised vehicles' sign and then down our farm track before stopping at the muck heap.
"Apparently there had been a road closure and one of his colleagues told him to take a right, which he did.
"It doesn't seem there was much common sense at play. The further he was getting the more awkward it was going to get for him.
"We don't even like taking our tractor right down to the muck heap, never mind a commercial bus."
Mr Mizen and his brother Chris used a tractor to tow the bus free.

The Northern Ireland Rare Disease Partnership aims to give sufferers and their carers an independent voice.
The group, created with the Patient Client Council, aims to improve treatment and care for those affected by rare diseases.
Jane Stewart is one woman who hopes that the new partnership will help families like hers.
She suffers from Spondylo Ephysial Dysplasia (SED) - a genetic condition which her young son, Saul, has inherited. It is a form of restricted growth or dwarfism.
"I wouldn't change myself or my son or children like him for the world. But I would change the world for them," she said.
"I feel a partnership for rare disease is going to be extremely useful for families like ours living with a rare condition.
"In the information that I have about the rare disease partnership, the focus is on education, provision of special services and support."
Richard Dickson from the Patient Client Council said: "This partnership aims to be a voice for those people scattered across Northern Ireland affected by rare disease with no other means to speak up for themselves."
The partnership will lobby and advocate on their behalf.
The 400th anniversary of the death of William Shakespeare next year will be marked by a major global cultural and educational project in 140 countries.
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A bus ended up stuck in a manure heap after apparently taking a wrong turn.
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A new organisation has been set up in Northern Ireland to support people who suffer from rare diseases.