| By: |
Thêmis Aragão (Chair for Economic Policy, University of Hamburg);
Wolfgang Maennig (Chair for Economic Policy, University of Hamburg) |
| Abstract: |
These events promise to improve the urban quality of life and to induce social
legacy because of investments in urban infrastructure, transportation, and
sporting facilities. Our analysis of the case of Brazil, especially in Rio de
Janeiro (host of the 2014 World Cup and 2016 Olympic Games) shows that such
benefits may differ locally and may accentuate the process of socio-spatial
segregation. Urban projects often include forced evictions of low-income
populations and the consequent expansion of social segregation. In public
opinion, mega events are also responsible for increasing rents and (real
estate) prices. However, such inflationary phenomenon occurs in most Brazilian
cities, including non-host cities. The appreciation of real estate is
explained largely by population and economic growth and the reduction of
interest rates through mortgage programs, as well as reduced social
inequality. Public investments in mega events account for only approximately
0.15% of Brazilian GDP from 2007 to 2016 and are thus too small to be
responsible for the (increasing) social problems. Obviously, the perceived
lack of public accountability for mega event finances as well as the perceived
lack of susceptibility to social issues by the mega sporting projects may harm
the public opinion of mega events. International sporting federations should
thus have every interest in ensuring that their mega events target social
inclusion and pay more attention to the needs of local urban and social
policies. |
| Keywords: |
Housing Prices, Real Estate, FIFA World Cup, Olympics, Mega Sporting Events, Rio de Janeiro 2016, Urban Planning, Accountability |
| Date: |
2013–08–20 |
| URL: |
http://d.repec.org/n?u=RePEc:hce:wpaper:047&r=spo |