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By: R. Christopher Knight, Tiffany Farrar, Michael Worth, Haamid Rahim Brazil: The Bid for the 2016 Olympics and 2014 World Cup
Olympic Bid Video LINK
Olympic Bid Video LINK
Competition Venues • Barra, Deodoro, Maracana, Copacabana
Existing Buildings/Sites • Maracanã Stadium: site of the opening and closing, in addition to the finals of Football • Engenhão (JoãoHavelange Stadium): site of Athletic events • Maria Lenk Aquatic Center: site of Diving, and Water Polo • Copacabana Beach: site of Marathon swimming, Triathlon and Beach volleyball • HSBC Arena: site of Artistic gymnastics, Rhythmic gymnastics, Basketball, and Trampoline • Sambadrome: site of Marathon and Archery • Aracanãzinho Gymnasium: site of Volleyball • Lagoa Rodrigo de Freitas: site of Rowing and Canoeing
Solar City Tower • Built atop the island of Cotonduba • It will be seen by the game visitors and participants as they arrive by air or water • The tower, captures solar energy. It will supply energy • for all of the Olympic city, as well as also for part of Rio . It pumps up water from the ocean to create what • appears like a water fall and this fall stimulates turbines
Airports Rio de Janeiro-Galeão International Santos Dumont Domestic
Is Brazil Ready? • Hosted 2007 Pan American Games • Will Host 2014 FIFA World cup • Ready for Olympics by 2016?
Finances: The Basics • Brazil has emerged as one of the fastest-growing developing economies in the world • Average annual GDP growth near 5% (it was 7.5% in 2010) • Currently ranked as the world’s 8th largest economy with its GDP estimated at $2.023 trillion (U.S. dollars) • Predicted to become 1 of the world’s 5 largest economies in years to come
Expense of Hosting the Olympics • The estimated total cost of hosting the 2016 Olympics in Rio de Janeiro is $14 billion • In 2004, the Olympics hosted in Athens, Greece had a budget of $15 billion • In 2008, the Olympics hosted in Beijing, China spent an astronomical $42 billion
Government Allocations • President Luis Inacio Lula da Silva has already approved some $240 billion in funding for the Games from the Program for Growth Acceleration (PAC) • This money will be used for projects such as airport and subway expansions, road/infrastructure construction, etc… • He also offered the federal government’s financial guarantee to cover any shortfalls in the proposed budget by the organizing committee
Benefits to Hosting • It is estimated that 120,000 jobs will be created EACH year until the Games in 2016 • Many of which will be in the construction industry • Improvement in electricity systems ($700 million) and communications infrastructure ($500 million) • Building of additional hospitals, schools, and leisure facilities • Improvements to slum housing (which 1 in 7 of Rio’s residents live in)
Overall Impacts for Brazil • Modest dissent among citizens in and around Rio citing that over 90% of children do not even have adequate access to play sports, and so government money should be spent on these types of domestic issues • Still, there is strong support for the Games in Rio
So is hosting good for economics? • There is no doubt that there are substantial expenses associated with hosting the Olympics • It takes years to break even on the debt accrued from the immediate costs of hosting the Games • There is much debate as to whether or not hosting the Games is a financially wise decision • However, Brazil’s economy is predicted to experience a $24.5 billion boost between now and 2027 because of the Olympics • Economists accredit increased liberalization of trade and economic openness created by the hosting of the Olympics for much of this growth up to 30% increase in trade in subsequent years after hosting the Olympics
International Politics Process Towards Brazil’s victory as the host city for Olympics' 2016 “Chicago had Barack Obama. Tokyo had $4 billion in the bank. Madrid had powerful friends.” But, “Rio de Janeiro had the enchanting story” -AP
Bidding process: Olympics for 2016 • Process: Started May 16th, 2007 and the mandatory application was due Sept. 13th, 2007 • Competition seven cities applied: among them were Madrid, Rio de Janeiro and Chicago… • Madrid, Chicago, Rio de Janeiro and Tokyo made the cut, and the other 3 were eliminated. • Madrid became Rio’s only competitor, but Rio won by a significant margin. • The first South American city to host the Olympics
Controversy • Decision to eliminate Doha was controversial since they scored more than Rio in the initial round but… • After Chicago was eliminated almost all the votes went to Rio in the 2nd round. Rio won significantly by 66-32 in the 3rd round. • The rocky relationship between the United States Olympic Committee (U.S.O.C.) and the International Olympic Committee (I.O.C.) may have had some thing to do with Chicago’s failure. • “It was a defeat for U.S.O.C., not for Chicago”- Denis Oswald, I.O.C. member from Switzerland. • Madrid fought hard, with this being their 2nd consecutive attempt to host the Olympics, but as one Spaniard put it “We knew it was going to be hard because the next Olympics will be in London.”
2014 FIFA World Cup • Second time hosted in Brazil, First being in 1950 • Fifth country to have hosted the event twice • First time to be hosted in South America since the 1978 World cup in Argentina
Host Selection for the 2014 World Cup • On March 7 2003 the World Football body, FIFA announced that the tournament would take place in South America • On 3 June 2003 CONMEBOL announced that Argentina, Brazil, and Colombia wanted to host the 2014 World Cup • By 17 March 2004 CONMEBOL voted to adopt Brazil as their sole candidate
Continued • Argentina’s bid never materialized • On 11 April 2007 Colombia withdrew its bid • Brazil became the only official candidate to host the cup • 30 October 2007 Brazil won the right to host
Stadiums • 12 Cities were chosen to host the games • Included Brasilia, Sao Paulo and Rio de Janeiro • Brasilia has a planned capacity of 71,500 • Sao Paulo has a planned capacity of 48,000 • Rio de Janeiro has a planned capacity of 76,525
Costs • The CBF estimates costs to be over R$ 1.9 Billion (US$ 1.1 Billion) for stadiums • In Sept 2008 Brazils Ministry of Transport announced a high-speed rail project that would connect Campinas, Sao Paulo, and Rio with an approximate cost of R$11 Billion (US$ 6.25 Billion) • On 31 August 2009 the state airport management agency stated a R$ 5.3 Billion (US $ 3 Billion) investment plan to upgrade airports for the host cities
Government Allocations • The Brazilian federal government has allocated R$ 3 billion (US$ 1.8 Billion) for investment for the 2014 World Cup • Most of the investment will go in improving transport in the host cities • Brazilian federal government will grant tax breaks for the construction and refurbishment of stadium • In Sept 2009 the Brazilian development bank opened a credit line of R$ 4.8 Billion ( Us$ 2.7 Billion) for stadiums
Impacts on Brazil for hosting • The World Cup will lead to upgraded airports, monorail systems, new hotels, improved telecommunications and latest generation stadiums • Tourism is expected to generate US$5 Billion • 700,000 jobs are expected to be created • The GDP of Brazil in the remainder of this decade could increase upwards of US$65 Billion
Questions • Why is there Criticism of Brazil being able to host major sporting events like the World Cup and the Olympics? • Is hosting the Olympics a good use of Brazilian government funds or is this an excuse to spend disproportionate amounts of money on urban development while other institutions like social welfare and health are already so weak? • Why do you think the I.O.C. eliminated Chicago in the first round? (Bad relations between U.S.O.C. and I.O.C., trying to find a new location (continent) to host the Olympics etc.)