The Summer Olympic Games And Its Impact On A Nation 's Economy

918 Words Oct 4th, 2016 4 Pages
In 2016, the Summer Olympic games was held in Rio, which was the first South American city to be a host (Dale,2016). When Rio was chosen by the International Olympic Committee (IOC), it was experiencing a period in which their economy was increasing (McBrid, 2016). In 2013, Brazil’s poverty rate dropped from 25 percent to 9 percent (Nelson, 2016). In 2009, the inflation rate was lower than the banks predicted, so the Brazilian stock market had the highest value in the world (Dale, 2016). Also, the unemployment rate was decreasing (McBrid, 2016; Nelson, 2016). By the time the games were to be held, the economy was going down (McBrid, 2016), and despite popular belief, hosting the Olympic games might have a negative impact on a nation’s economy.
Brazil’s lack of the budget resulted in the government being unable to allocate sufficient amount of money to the areas that needed investment. The cleaning pollution project illustrated that the Rio government was running behind on preparing for the games (Nelson, 2016). At the beginning, it was planned to spend 4 billion dollars on this project; nevertheless, the Rio government only spent 170 million (Nelson, 2016). Meanwhile, the transportation, telecommunication and sporting infrastructure required costly investment to meet the IOC standard (McBrid, 2016). Later, the federal government arranged nearly 900 million to be given to the Rio government to solve the pollution problem (Nelson, 2016). The extra spending by the government…

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