Emerging Markets

744 Words3 Pages
Qatar’s bid for FIFA World Cup 2022 for £43 billion (Lecture by Evans JD) clearly depicts a success story which lies behind the massive investment to organize mega-sporting events. This investment might seem irrational to comment as there is no direct long-term sustainable economical value attached to the investment so made, but when considering the indirect impact on the economy due to hosting such event is massive in terms of trade & also in terms of global recognition of being a prosperous & promising nation. In this paper the key highlight factors would be the Beijing Olympics 2008 & the South Africa World Cup 2010 which would help us analyze the impact of mega-sporting events to the host nations. Host country have an explicit range of expenditure before qualifying for the bid to host a mega-sporting event for which countries plan well-in advance to prepare the necessary requisites & make most of the developments part of its long-term economic development process similar to China while hosting the Olympics 2008 in Beijing, wherein the infrastructural development was part of its thirty year reform program. Olympics acted as a catalyst which fuelled the process of development. Olympics also streamlined the growth pattern of development from an extensive to intensive growth strategy, this made the economy more technologically efficient & not be more dependent on the natural resources available. Sporting events brings in massive media hype, hence the foremost important & prominent delivery is the legacy of the event & also adding tradition to it in order to create milestones for competing nation as well as to the world in showcasing the potential of the nation. South Africa’s investment for FIFA World Cup 2010 helped the nation ... ... middle of paper ... ...nstitute use such event as a carrier for promoting the quality & position there production as elite products, playing with the previous perception of inferior goods as in case of China. Sporting events in the past are not identified as a chariot for a sustainable growth, but today economies of the emerging countries exploit such opportunity in order to showcase the country as a prosperous & competing nation towards the world economy. Olympics 2008 acted a vehicle to sustain the financial crisis which otherwise could not have sustained this efficiently. These events does not generate sufficient benefit in short-term, but for long-term they depicted an image to the world of the potential growth opportunity the country holds. Today China’s robust exports could be well remarked here, which is growing at a steady pace towards becoming the world most dominant exporter.
Open Document