Social and Economic impacts of the FIFA world cup

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1 Social and Economic impacts of the FIFA world cup In 2014, the 20 th FIFA world cup will take place in Brazil. In order to cater for the expected millions of tourists coming into the country to watch the games, many new structures have been or will be completed. The FIFA world cup tournament is an event involving 32 teams competing in venues within the host nation. This event is held for the duration of one month. As a result of the world cup, there are both positive and negative impacts on the economy and social sides of the country. Positive Economic Implications: In preparation for the 2014 FIFA world cup there will be many investments made. These will help make the country a more stable location for the future and for the present. There will be an estimated amount of $22.46 billion Brazilian real spent. Although this is a missive amount to spent for the world cup, there will also be an estimated additional $ billion Brazilian real that will be input into the Brazilian economy. With all of the construction work to create a suitable infrastructure for the world cup, there will also be around 3.63 million jobs to be created in the economic industry; the type of jobs that will be created will be those such as: Construction work (roads, buildings, stadiums) Hospitality (restaurants, cafes, food places in stadiums) Utilities (such as water, electricity, sanitation and cleaning) This is going to change the lives of millions of people and is going to make the country, overall a more stable economy. Along with the increased stability of the economy, also comes an increase of tourism due not only to the FIFA world cup fans, but, also as a result of media exposure. When mega events such as the world cup occur, media exposure is a massive booster for the economy, even though many people might not enjoy watching the world cup, the country will be getting the image of a fairly stable environment for a holiday. People know due to the media that there are many new structures being built and that means that the standard of the town will be lifted. Page 1

2 Negative Economic Implications Although there are many positive impacts for the FIFA world cup in Brazil, there are just as many negative impacts. We all know that Brazil is going to spend millions of dollars to provide the country with the most luxurious and sophisticated facilities (such as hotels, stadiums and transportation.) This is going to take up a lot of space in the area. A lot of people will take that space for granted. Nobody really knows what the stories are behind the areas that will be the sophisticated holiday destinations. Hundreds of people once lived in the shabby backstreets of Brazil; many people have had generations of their families live in those areas. Then the government came along and told them to get out and find somewhere else to live. This type of situation happened all over the country. Not only were these families given no warning what so ever, they were only paid a fraction of what their properties really worth. The money that they will be paid will not be enough to live in the country as the properties will increase in value. With the amount of construction that is going to occur in the coming months and years, environmental degradation will arise. The amount of resources that are used to destroy and then rebuild certain structures will not only clutter the streets, they will also pollute the air. By polluting the air of the city, complications may come about. With all of the different machines adding to the pollution of the cars and transportation systems, environmental safety is a problem. We have seen that with the amount of people in a small area and pollution machines, the air could potentially become unbreathable. In places such as Japan, China, Beijing, respiratory problems are common on the streets and they are getting a taste of what it could be like in future years to come. If we do not take precautions to reduce the amount of pollution produced by machines, the air that we breathe could become toxic for humans, animals and plants causing much more than respiratory problems. Page 2

3 Positive social impacts: With the increase of infrastructure in Brazil for the world cup, positive social impacts will take place. One of the social impacts due to the world cup is the increased skill level of thousands of employees. With all of the new jobs that will be created, and the thousands of people being employed and trained to do the jobs, the skill level of the population will rise. Even if jobs only last short term, hopefully many of the employees will be able to then find it a bit easier to find a better paying job, having more experience. Most businesses are more likely to hire an experienced worker rather than an unexperienced person with less knowledge of what a work place is like. With more experience in a work place, confidence is likely to soar. With the higher level of confidence, it is possible for people to take more action to make their jobs better and possibly even find more stable, better paying work places. Improving your job position is an important step that should be taken in all careers. Just by starting off working at a restaurant or a hotel could then mean you may one day travel for your job. Relocation is also a possibility after gaining confidence and a higher position. Relocating to a different country for your job could likely mean that more money would be involved. Brazil is not the most stable city in the world and might not be able to afford relocating and recruiting new people to expensive jobs. By starting in a city that needs the assistance for at least the next few years, you could save up for a more risky job. Page 3

4 Negative social impacts: One of the major negative social impacts that could occur in Brazil is the social class division. Social class division is, when the division of people according to how much money they have takes place. This problem not only effects one country but the rest of the world as well. If the population of Brazil was divided into social class division, people would feel discriminated against. With the amount of older and potentially poorer parts of the country, when huge and fancy motels, hotels and apartments start to spring up, a whole new crowd is attracted. People who have lived in Brazil for many years are more likely to be more stubborn to participate in the opportunities that the world cup is presenting. Younger and newer people in the Brazilian society are more likely to get jobs that are newly available due to the high demands of new staff for the new buildings and transportation systems. People who earn more money are then valued more over the citizens that don t earn as much. This may mean that the people who have had generations of family go through living in the same area are valued less than the new population of the country. The wellbeing on the current population of Brazil could be affected by the world cup. By having new and improved surroundings in the area, streets may become congested, prices of products may rise, more tax may have to be paid and of course, pollution will be a problem. Of course there will be practices in place to reduce peoples carbon footprint, but how effective will the process be? With dramatic changes made to the atmosphere of the country, problems are likely to arise and the current population of the country are the ones who will have to deal with and most likely pay for the damage caused in one way or another. In conclusion, the FIFA world cup will have major effects on the negative and positive sides of social and economic implications. The world cup is going to be a wonderful event that hopefully millions of people will enjoy watching but there will be impacts that will last for years to come and we don t know yet if they will be a negative impact of a positive impact. The society of Brazil will take great pride in their country and will hopefully use the infrastructure that is new to their advantage and get the use out of Page 4

5 it. This event will also hopefully stabilise the economy and improve the social side of the country. Page 5