News / Economy

Mixed Opinions About World Cup Impact on Brazilian Economy

Mixed Opinions About World Cup Impact on Brazilian Economyi
X
June 30, 2014 10:26 PM
As fans enjoy football’s (soccer’s) month-long World Cup, Brazilian authorities are pleased over the boost they say the tournament is giving the country's economy. However, independent analysts who study such mega-events are less enthusiastic. VOA’s Scott Bobb reports from Rio de Janeiro.
Scott Bobb

As fans enjoy football’s (soccer’s) month-long World Cup, Brazilian authorities are pleased over the boost they say the tournament is giving the country's economy.  However, independent analysts who study such mega-events are less enthusiastic.
 
The 2014 World Cup has injected an estimated $15 billion into the Brazilian economy and created many jobs, this according to the head of the government’s Embratur tourism board, Vicente Neto at a news conference June 19.

“Regarding the human legacy, the numbers are extraordinary: the creation of one million jobs in the country due to this great event, one million jobs or 15 percent of all the jobs created this year in Brazil,” he said.

The government has invested $11 billion in stadiums and infrastructure and another $2 billion in security.  It is expected to spend billions more preparing for the 2016 Olympic games in Rio.
 
But an analyst who studies such mega-events, Architecture and Urbanism Professor at Rio de Janeiro’s Fluminense Federal University, Chris Gaffney, believes these figures are exaggerated.

“I don’t think that they’ve invested enough money to create those kinds of permanent jobs. In the scale of the Brazilian economy we’re not looking at that much money being invested.  It’s 30 billion [dollars invested] in a $1 trillion economy.”
 
Another expert, Lisa Delpy Neirotti of George Washington University's business school in the United States, says the real economic benefits of such events are less tangible and more long-term.

“There’s a lot of transfer of knowledge," she said. "People are learning more about hospitality.  There’s also the broadcast center where they’re being trained in how to use technology.  And so I think it’s in the media sector, a lot in the hospitality industry and also in licensing and merchandizing, retail.”

Gaffney believes the money being spent benefits very few Brazilians.

“The World Cup and Olympics are part of an extractive business model that moves around the world very freely, a top-down business model that uses the interests of local political and economic elites to make money for international corporations,” he said.

Delpy Neirotti disagrees.

“Yes, there’s been a lot of money spent here but we have to realize that the infrastructure that they’ve built up around the World Cup is something that will last and it stays in the country,” she said.
 
Other analysts say the Cup may help the Brazilian economy but it also boosts inflation and public debt.  Less than half of the Brazilians in a recent poll believed that hosting the Cup was a good idea.

And there have been many demonstrations against the Cup, though they have declined since the tournament began.
 
Nevertheless, many Brazilians are proud to host the World Cup and the 600,000 foreign visitors it brings. The hope is that they will spread the good word about Brazil when they return home.

You May Like

US Investors Eye IPO for China's Alibaba

E-commerce giant handled 80 percent of China's online business last year, logging more Internet transactions than US-based Amazon.com and eBay combined More

Video Uneasy Calm Settles Over Israel, Gaza Strip

As cease-fire begins, Palestinians celebrate in streets; Israelis remain wary More

Video Chinese Doctors Use 3-D Spinal Implant

In treatment of a 12-year-old boy Chinese doctors used a 3-D printer and special software to create an exact replica of vertebra More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Chinese Doctors Use 3-D Spinal Implanti
X
August 27, 2014 4:53 PM
A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. VOA News reports from Kolkata.
Video

Video Northern California Quake: No Way to Know When Next One Will Hit

A magnitude 6.0 earthquake rocked northern California’s Napa Valley on Sunday. Roads twisted and water mains burst. It was the wine country’s most severe quake in 15 years, and while hospitals treated many people, no one was killed. Arash Arabasadi has more from Washington on what the future may hold for those residents living on a fault line.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.
Video

Video Ukraine: Captured Troops Proof of Russian Role in Separatist Fight

Ukrainian officials say they have captured Russian soldiers on Ukrainian territory -- the latest accusation of Moscow's involvement in the conflict in eastern Ukraine. VOA's Gabe Joselow reports from the Ukrainian side of the battle, where soldiers are convinced of Russia's role.
Video

Video Rubber May Soon Come From Dandelions

Synthetic rubber has been around for more than a century, but quality tires for cars, trucks and aircraft still need up to 40 percent or more natural rubber content. As the source of natural rubber, the rubber tree, is prone to disease and can be affected by bad weather. So scientists are looking for replacements. And as VOA’s George Putic reports, they may have found one in a ubiquitous weed.
Video

Video Jewish Life in Argentina Reflected in Yiddish Tango

Jewish people from across Europe and Russia have been immigrating to Argentina for hundreds of years. They brought with them dance music that were eventually mixed with Argentine tango. The result is Yiddish tango -- a fusion of melodies and cultural experiences that is still evolving today. Elizabeth Lee reports from the Skirball Cultural Center in Los Angeles, where one band is bringing Yiddish tango to an American audience.

AppleAndroid

World Currencies

EUR
USD
0.7537
JPY
USD
103.79
GBP
USD
0.6032
CAD
USD
1.0957
INR
USD
60.522

Rates may not be current.