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Does hosting a World Cup make economic sense?
Article

Does hosting a World Cup make economic sense?


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Editorial Rating

8

Qualities

  • Overview
  • Concrete Examples
  • Engaging

Recommendation

Conventional wisdom says that large-scale events, such as the Olympic Games or the World Cup, confer economic sparkle to host cities and countries. The truth is a bit different, as outlays for these extravaganzas tend to far outweigh their benefits, saddling hosts with debt and limited purpose structures that become monuments to excess. The World Economic Forum’s Stefan Hall cautions that leaders should consider long-term costs versus short-term gains. getAbstract recommends this engaging read to tax-paying sports fans around the world.

Take-Aways

  • Holding a World Cup would appear to be a good investment: Boosters promise such benefits as an increase in tourism and the launch of large-scale infrastructure projects. 
  • However, the costs of these types of events typically exceed their benefits. Stadiums are expensive to build, and their infrequent use fails to justify their ongoing maintenance. 
  • Money spent on athletes’ villages or sporting arenas could instead go toward projects that bring longer-term increases in living standards. 

About the Author

Stefan Hall is with the Information and Entertainment System Initiative at the World Economic Forum.