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

    Video For Many US Veterans, the Vietnam War Continues

    More than 40 years after it ended, war in Vietnam and America’s role in it continue to provoke bitter debate, especially among those who fought in it

    Video Newest US Citizens, Writing the Next Great Chapter

    100 immigrants graduated Friday as US citizens in New York, joining the ranks of 680,000 others every year in cities across country

    Family's Fight Pays Off With Arlington Cemetery Burial Rights for WASPs

    Policy that allowed the Women Airforce Service Pilots veterans to receive burial rites at Arlington had been revoked in 2015

    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.
    Vietnamese-American Youth Optimistic About Obama's Visit to Vietnami
    X
    Elizabeth Lee
    May 22, 2016 6:04 AM
    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video Vietnamese-American Youth Optimistic About Obama's Visit to Vietnam

    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video First-generation, Afghan-American Student Sets Sights on Basketball Glory

    Their parents are immigrants to the United States. They are kids who live between two worlds -- their parents' homeland and the U.S. For many of them, they feel most "American" at school. It can be tricky balancing both worlds. In this report, produced by Beth Mendelson, Arash Arabasadi tells us about one Afghan-American student who seems to be coping -- one shot at a time.
    Video

    Video Newest US Citizens, Writing the Next Great Chapter

    While universities across the United States honor their newest graduates this Friday, many immigrants in downtown Manhattan are celebrating, too. One hundred of them, representing 31 countries across four continents, graduated as U.S. citizens, joining the ranks of 680,000 others every year in New York and cities around the country.
    Video

    Video Vietnam Sees Strong Economic Growth Despite Incomplete Reforms

    Vietnam has transformed its communist economy to become one of the world's fastest-growing nations. While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments -- as VOA's Jim Randle reports.
    Video

    Video Qatar Denies World Cup Corruption

    The head of Qatar’s organizing committee for the 2022 World Cup insists his country's bid to host the soccer tournament was completely clean, despite the corruption scandals that have rocked the sport’s governing body, FIFA. Hassan Al-Thawadi also said new laws would offer protection to migrants working on World Cup construction projects. VOA's Henry Ridgwell reports.
    Video

    Video Infrastructure Funding Puts Cambodia on Front Line of International Politics

    When leaders of the world’s seven most developed economies meet in Japan next week, demands for infrastructure investment world wide will be high on the agenda. Japanese Prime Minister Shinzo Abe’s push for “quality infrastructure investment” throughout Asia has been widely viewed as a counter to the rise of Chinese investment flooding into region.
    Video

    Video Democrats Fear Party Unity a Casualty in Clinton-Sanders Battle

    Democratic presidential front-runner Hillary Clinton claimed a narrow victory in Tuesday's Kentucky primary even as rival Bernie Sanders won in Oregon. Tensions between the two campaigns are rising, prompting fears that the party will have a difficult time unifying to face the presumptive Republican nominee, Donald Trump. VOA national correspondent Jim Malone has more from Washington.
    Video

    Video Portrait of a Transgender Marriage: Husband and Wife Navigate New Roles

    As controversy continues in North Carolina over the use of public bathrooms by transgender individuals, personal struggles with gender identity that were once secret are now coming to light. VOA’s Tina Trinh explored the ramifications for one couple as part of trans.formation, a series of stories on transgender issues.
    Video

    Video Amerikan Hero Flips Stereotype of Middle Eastern Character

    An Iranian American comedian is hoping to connect with American audiences through a film that inverts some of Hollywood's stereotypes about Middle Eastern characters. Sama Dizayee reports.
    Video

    Video Budding Young Inventors Tackle City's Problems with 3-D Printing

    Every city has problems, and local officials and politicians are often frustrated by their inability to solve them. But surprising solutions can come from unexpected places. Students in Baltimore. Maryland, took up the challenge to solve problems they identified in their city, and came up with projects and products to make a difference. VOA's June Soh has more on a digital fabrication competition primarily focused on 3-D design and printing. Carol Pearson narrates.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8916
    JPY
    USD
    109.40
    GBP
    USD
    0.6905
    CAD
    USD
    1.3147
    INR
    USD
    67.522

    Rates may not be current.