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

Hostage Crisis Could Divide Japan Over Plans to Boost Military

Japanese Chief Cabinet Secretary Yoshihide Suga said Monday the government is working closely with the Jordanian government to secure the release of remaining Japanese hostage Kenji Goto More

Video Brussels Shaken as New Greek Leader Challenges Europe’s Austerity Drive

Country's youngest ever PM Alexis Tsipras, 40, sworn in Monday and says he will restore dignity to Greece by ending spending cuts More

Multimedia National Geographic Photo Camps Empower Youth

Annual mentoring program's mission is to give young people a voice to tell their own stories through photography 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.
Obama Urges Closer Economic Ties During Historic India Visiti
X
Aru Pande
January 26, 2015 9:33 PM
U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video Obama Urges Closer Economic Ties During Historic India Visit

U.S. President Barack Obama says the United States and India must do better to capitalize on untapped potential in their economic relationship - by removing some of the roadblocks to greater trade and investment. As VOA correspondent Aru Pande reports from New Delhi, Obama spoke after participating in India’s Republic Day celebration.
Video

Video US, EU Threaten New Russia Sanctions Over Ukraine

U.S. President Barack Obama has blamed Russia for an attack by Ukrainian separatists that left dozens dead in the port of Mariupol and cast further doubt on the viability of last year’s cease-fire with the Kyiv government. VOA’s Michael Bowman reports from Washington.
Video

Video White House Grapples With Yemen Counterterrorism Strategy

Reports say the U.S. has carried out a drone strike on suspected militants in Yemen, the first after President Barack Obama offered reassurances the U.S. is continuing its counterterrorism operations in the country. The future of those operations has been in question following the collapse last week of Yemen’s government. VOA White House correspondent Luis Ramirez reports.
Video

Video Kerry Warns Against Violence in Nigeria Election

US Secretary of State John Kerry visited Nigeria Sunday in a show of the level of concern within the U.S. and the international community over next month’s presidential election. Chris Stein reports.
Video

Video Zoo Animals Show Their Artistic Sides

The pursuit of happiness is so important, America's founding fathers put it in the Declaration of Independence. Any zookeeper will tell you animals need enrichment, just like humans do. So painting, and even music, are part of the Smithsonian National Zoo's program to keep the animals happy. VOA’s June Soh met some animal artists at the zoo in Washington. Faith Lapidus narrates.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Saudi, Yemen Developments Are Sudden Complications for Obama

The death of Saudi Arabia's King Abdullah and the collapse of Yemen’s government have cast further uncertainty on U.S. efforts to fight militants in the Middle East and also contain Iran’s influence in the region. VOA White House correspondent Luis Ramirez reports on the new complications facing the Obama administration and its Middle East policy.
Video

Video Progress, Some Areas of Disagreement in Cuba Talks

U.S. and Cuban officials are reporting progress from initial talks in Havana on re-establishing diplomatic ties. U.S. Assistant Secretary of State (for Western Hemisphere Affairs) Roberta Jacobson said while there was agreement on a broad range of issues, there also are some “profound disagreements” between Washington and Havana. VOA State Department correspondent Pam Dockins has the story.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid

World Currencies

EUR
USD
0.8893
JPY
USD
118.31
GBP
USD
0.6660
CAD
USD
1.2459
INR
USD
61.427

Rates may not be current.