Legacy of Sports events presentation

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  • 1. Legacy of Mega Sports Events: What May Be The Legacy In Brazil from Hosting two Mega Sports Events? Sofia Sunden Research Assistant / Internship Programme Brasília, 10 th February 2012
  • 2. What May be the Legacy in Brazil from Hosting two Mega Sports Events?
    • Brazil has performed relatively well throughout the economic crisis, recovering fast from it.
    • Brazil is one of the few countries managing to combine economic growth with the reduction of absolute poverty and inequality .
    • Mega Sport Events are commonly believed to boost economic growth and enhance political reputation.
    • Will hosting two mega sports events establish Brazil as an economically and politically leading country – or is there a risk that the opposite scenario occurs?
  • 3. Brazil’s Current Economic Situation
    • Despite the crisis, Brazil’s economy has performed relatively well
      • • Annual GDP growth rate of 7.5 % percent in 2010
      • … while reducing poverty and inequality:
      • • 12 million lifted out of absolute poverty – from 11% to 3.8% (2001-2007)
      • • Income inequality (Gini) fell 8%, to 0.47 (2001-2009) – still high, though
      • Important contributors to poverty and inequality reduction:
      • • Bolsa Família (conditional cash transfer programme )
      • • New national minimum pay policy
  • 4. Increasing Inequality Worldwide
      • Income inequality has increased worldwide since the 1980’s (Wade 2011).
      • Income inequality can have a number of negative social impacts:
      • • Increased crime rates
      • • Reduced overall health
      • • Social unrest
      • (Oxfam 2012)
      • Therefore, to reduce income inequality should be a policy concern.
      • Such concern must be integral to the planning and implementation of the preparations for mega sports events.
  • 5. Legacy of Mega Sports Events , a contested concept
        • “ The underlying idea of a legacy creation is that it represents something of substance that will enhance the long-term well-being or lifestyle of destination residents in a very substantial manner—preferably in a way that reflects the values of the local population” (Ritchie 2000 p. 156).
        • Governments, media and lobby groups often refer to a positive legacy to get public approval and provide justification for redistributing funds.
        • Difficult to measure; effect on local public as well as visitors.
  • 6. Motivation to Organize Mega Sports Events
    • Motivations for countries wishing to host mega sports events commonly include the beliefs that it will boost economic growth, enhance political reputation and leave a long lasting positive legacy.
    • Motivations:
    • It is good ‘marketing’ for the country;
    • attract foreign investors;
    • increase tourism;
    • enhance the country’s international profile;
    • create investment in infrastructure -> boosting economic activity.
    • On the other hand, huge public investments are necessary.
  • 7. The Idea of a Positive Legacy
    • A Positive Legacy was seen in Barcelona’s Olympic Games, 1992
      • Urban development, innovative design and increased reputation
    • Is it an appropriate example to be used as a blue-print?
      • Urban developments were already in place in Barcelona for a decade prior to the events (Rolnik ,2011)
  • 8.
    • Mega Sport Events have also generated Negative Legacies:
    • Greece, Athens Olympic Games, 2000: economic losses and massive debts.
    • China, Beijing Olympic Games, 2008: relocation and forced evicted people.
    • South Africa, World Cup, 2010: forced evictions of people upon removal of slum areas; did not generate the forecasted surplus.
    • (Rolnik, 2011)
    A number of Negative Legacies
  • 9. Legacy in BRICS Countries?
    • BRICS countries have recently hosted (or are planning to host) a number of mega sport events.
    • Developed vs. BRICS countries as organizers of Mega Sport Events
      • Different economic and social costs?
        • Germany and France were able to refurbish already existing stadiums & no known legacy of forced evictions.
      • Is there more at stake for BRICS countries and more to gain for these countries in terms of increased political reputation?
        • The notion of ‘beautification’ and clearance of slum-areas for example.
      • Can the BRICS countries, which have a high level of absolute poverty, justify the spending for a Mega Sports Event?
  • 10. What May Be The Legacy in Brazil?
    • Some very optimistic forecasts (Ernst and Young, 2010) :
    • “ The positive effects of hosting one of the world’s major sports events may last forever and multiply, as we will see.”
    • Tourism may increase up to 79%.
    • “ In total, an additional R$ 142.39 billion will flow in the country from 2010 to 2014, generating 3.63 million jobs/year and R$ 63.48 billion of income for the population.”
    • “ After going through some stages and achieving solid macroeconomic core principles, the country approaches its desired status of being the world’s fifth largest economy in the very near future.”
  • 11. Ex-ante vs. ex-post
    • Estimations of impacts on economic growth, job creation and increased tourism are difficult to make.
    • To consider:
    • Is Brazil different from other countries where these events generated losses?
    • Is it possible to repeat the success witnessed in Barcelona ’92?
  • 12. Best case scenario
    • Best case scenario:
    • Improved infrastructure in a number of cities – including enhanced public transportation systems;
    • Creation of jobs – especially related to tourism and construction;
    • “ Pacifications” of a number of favelas in Rio de Janeiro which a) will curb drug trafficking and b) could provide improved social infrastructure;
    • Increased tourism to Brazil;
    • Enhanced reputation as a world leading country.
  • 13. Worst case scenario
    • A few risks:
    • Economic losses:
    • The government has assured to cover any funding issues the Organizing Committee may face.
    • Decreased social conditions or homelessness for those forced evicted.
    • Human rights violations
      • May be permitted by federal and state governments if and when allowing forced evictions in order to make space for the construction of arenas and the beautification of the cities.
  • 14. Final Thoughts
    • To Consider and Discuss:
    • Will hosting these mega sport events result in economic gains or losses?
    • Can these events generate a positive legacy among the public?
    • Will these events strengthen Brazil’s position economically and politically?
    • And finally: Is It Worth It?
  • 15. REFERENCE LIST Ernst and Young (2010) Sustainable Brazil Social and Economic Impacts of the 2014 World Cup © 2010 EYGM Limited. ( The study made in association with the Fundação Getúlio Vargas.) Newton, Caroline (2009) The Reverse Side of the Medal: About the 2010 FIFA World Cup and the Beautification of the N2 in Cape Town, Urban Forum Ritchie, J (2000) Turning 16 days into 16 years through Olympic legacies . Event Management Rolnik, Raquel (2011) Interview: “World Cup and Olympics: The Show and the Myth” published by Rio on Watch at http:// rioonwatch.org/?s =Raquel - originally published in Portuguese at http://pagina22.com.br/index.php/2011/08/o-espetaculo-do-mito/ “ O espetáculo e o mito ” - Revista Pagina 22 Oxfam (2012) Oxfam Briefing Paper Left behind by the G20? How inequality and environmental degradation threaten to exclude poor people from the benefits of economic growth . Oxfam GB Wade, R, H (2011) Income Inequality: Should We Worry About Global Trends? European Journal of Development Research . References
  • 16. The end
    • Thank you for listening
    • Sofia Sunden: fia_sund@hotmail.com