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Legacy of Sports events presentation

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Legacy of Sports events presentation

  1. 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. 2. What May be the Legacy in Brazil from Hosting two Mega Sports Events? <ul><li>Brazil has performed relatively well throughout the economic crisis, recovering fast from it. </li></ul><ul><li>Brazil is one of the few countries managing to combine economic growth with the reduction of absolute poverty and inequality . </li></ul><ul><li>Mega Sport Events are commonly believed to boost economic growth and enhance political reputation. </li></ul><ul><li>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? </li></ul>
  3. 3. Brazil’s Current Economic Situation <ul><li>Despite the crisis, Brazil’s economy has performed relatively well </li></ul><ul><ul><li>• Annual GDP growth rate of 7.5 % percent in 2010 </li></ul></ul><ul><ul><li>… while reducing poverty and inequality: </li></ul></ul><ul><ul><li>• 12 million lifted out of absolute poverty – from 11% to 3.8% (2001-2007) </li></ul></ul><ul><ul><li>• Income inequality (Gini) fell 8%, to 0.47 (2001-2009) – still high, though </li></ul></ul><ul><ul><li>Important contributors to poverty and inequality reduction: </li></ul></ul><ul><ul><li>• Bolsa Família (conditional cash transfer programme ) </li></ul></ul><ul><ul><li>• New national minimum pay policy </li></ul></ul>
  4. 4. Increasing Inequality Worldwide <ul><ul><li>Income inequality has increased worldwide since the 1980’s (Wade 2011). </li></ul></ul><ul><ul><li>Income inequality can have a number of negative social impacts: </li></ul></ul><ul><ul><li>• Increased crime rates </li></ul></ul><ul><ul><li>• Reduced overall health </li></ul></ul><ul><ul><li>• Social unrest </li></ul></ul><ul><ul><li>(Oxfam 2012) </li></ul></ul><ul><ul><li>Therefore, to reduce income inequality should be a policy concern. </li></ul></ul><ul><ul><li>Such concern must be integral to the planning and implementation of the preparations for mega sports events. </li></ul></ul>
  5. 5. Legacy of Mega Sports Events , a contested concept <ul><ul><ul><li>“ 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). </li></ul></ul></ul><ul><ul><ul><li>Governments, media and lobby groups often refer to a positive legacy to get public approval and provide justification for redistributing funds. </li></ul></ul></ul><ul><ul><ul><li>Difficult to measure; effect on local public as well as visitors. </li></ul></ul></ul>
  6. 6. Motivation to Organize Mega Sports Events <ul><li>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. </li></ul><ul><li>Motivations: </li></ul><ul><li>It is good ‘marketing’ for the country; </li></ul><ul><li>attract foreign investors; </li></ul><ul><li>increase tourism; </li></ul><ul><li>enhance the country’s international profile; </li></ul><ul><li>create investment in infrastructure -> boosting economic activity. </li></ul><ul><li>On the other hand, huge public investments are necessary. </li></ul>
  7. 7. The Idea of a Positive Legacy <ul><li>A Positive Legacy was seen in Barcelona’s Olympic Games, 1992 </li></ul><ul><ul><li>Urban development, innovative design and increased reputation </li></ul></ul><ul><li>Is it an appropriate example to be used as a blue-print? </li></ul><ul><ul><li>Urban developments were already in place in Barcelona for a decade prior to the events (Rolnik ,2011) </li></ul></ul>
  8. 8. <ul><li>Mega Sport Events have also generated Negative Legacies: </li></ul><ul><li>Greece, Athens Olympic Games, 2000: economic losses and massive debts. </li></ul><ul><li>China, Beijing Olympic Games, 2008: relocation and forced evicted people. </li></ul><ul><li>South Africa, World Cup, 2010: forced evictions of people upon removal of slum areas; did not generate the forecasted surplus. </li></ul><ul><li>(Rolnik, 2011) </li></ul>A number of Negative Legacies
  9. 9. Legacy in BRICS Countries? <ul><li>BRICS countries have recently hosted (or are planning to host) a number of mega sport events. </li></ul><ul><li>Developed vs. BRICS countries as organizers of Mega Sport Events </li></ul><ul><ul><li>Different economic and social costs? </li></ul></ul><ul><ul><ul><li>Germany and France were able to refurbish already existing stadiums & no known legacy of forced evictions. </li></ul></ul></ul><ul><ul><li>Is there more at stake for BRICS countries and more to gain for these countries in terms of increased political reputation? </li></ul></ul><ul><ul><ul><li>The notion of ‘beautification’ and clearance of slum-areas for example. </li></ul></ul></ul><ul><ul><li>Can the BRICS countries, which have a high level of absolute poverty, justify the spending for a Mega Sports Event? </li></ul></ul>
  10. 10. What May Be The Legacy in Brazil? <ul><li>Some very optimistic forecasts (Ernst and Young, 2010) : </li></ul><ul><li>“ The positive effects of hosting one of the world’s major sports events may last forever and multiply, as we will see.” </li></ul><ul><li>Tourism may increase up to 79%. </li></ul><ul><li>“ 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.” </li></ul><ul><li>“ 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.” </li></ul>
  11. 11. Ex-ante vs. ex-post <ul><li>Estimations of impacts on economic growth, job creation and increased tourism are difficult to make. </li></ul><ul><li>To consider: </li></ul><ul><li>Is Brazil different from other countries where these events generated losses? </li></ul><ul><li>Is it possible to repeat the success witnessed in Barcelona ’92? </li></ul>
  12. 12. Best case scenario <ul><li>Best case scenario: </li></ul><ul><li>Improved infrastructure in a number of cities – including enhanced public transportation systems; </li></ul><ul><li>Creation of jobs – especially related to tourism and construction; </li></ul><ul><li>“ Pacifications” of a number of favelas in Rio de Janeiro which a) will curb drug trafficking and b) could provide improved social infrastructure; </li></ul><ul><li>Increased tourism to Brazil; </li></ul><ul><li>Enhanced reputation as a world leading country. </li></ul>
  13. 13. Worst case scenario <ul><li>A few risks: </li></ul><ul><li>Economic losses: </li></ul><ul><li>The government has assured to cover any funding issues the Organizing Committee may face. </li></ul><ul><li>Decreased social conditions or homelessness for those forced evicted. </li></ul><ul><li>Human rights violations </li></ul><ul><ul><li>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. </li></ul></ul>
  14. 14. Final Thoughts <ul><li>To Consider and Discuss: </li></ul><ul><li>Will hosting these mega sport events result in economic gains or losses? </li></ul><ul><li>Can these events generate a positive legacy among the public? </li></ul><ul><li>Will these events strengthen Brazil’s position economically and politically? </li></ul><ul><li>And finally: Is It Worth It? </li></ul>
  15. 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. 16. The end <ul><li>Thank you for listening </li></ul><ul><li>Sofia Sunden: fia_sund@hotmail.com </li></ul>

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