Brazil goes for the double

Could the host nation of the 2014 World Cup really stage the Summer Olympics two years later – and what would this mean for national and international economies?

The rise of Brazil is an astonishing story. A predominantly agrarian economy until the mid twentieth century, the country has passed through its industrial phase of development at breakneck speed to take its current place on the top table of the world’s ten largest economies.

Built for the 1950 World Cup, the 95,000 capacity
Maracanã stadium is being remodelled for the 2014 World Cup

The World Bank forecasts that Brazil will be the fifth largest economy in the world by 2016. As the rest of the world hobbles through these tough times, it is Brazil that is providing the crutch – much to the delight of President Luiz Inácio Lula da Silva, who jokingly remarked at a recent press conference: “Don’t you think it’s chic that we are now lending the IMF money?”

When it comes to sporting prowess, Brazil needs little introduction; the country that produced Pele, the highest achieving footballer of all time, has won the World Cup five times. The host nation of the 1950 World Cup is now preparing to host the event in 2014. In the run up to this colossal show, the government of Brazil will invest more than 42bn in infrastructure projects such as a new airport for Rio de Janeiro and an extensive remodel of the legendary Maracana Stadium.

The nation is looking even further ahead than 2014, with its sights set firmly on the 2016 Olympic and Paralympic Games. While there are some who might feel that hosting the world’s two biggest events within the space of two years is not realistic, back-to-back hosting of these two events has happened three times before: in Mexico (1968/1970), Germany (1972/1974) and the US (1994/1996).

Carlos Nuzman, President of the Rio 2016 Bid Committee, says the 2014 World Cup only helps their cause. “The 2014 FIFA World Cup will allow us to spread our capital expenditure for infrastructure and stadium improvements across two major sporting events, with much of the development work in place two years ahead of the Games.”

During their recent visit to Rio, the IOC Evaluation Commission indicated that the benefits of hosting the World Cup two years before the Games clearly outweighed the drawbacks, saying it would be a useful “test event” for the technical teams in their preparation for the Games.

Investment versus poverty
The resilience of the Brazilian economy to the current trying conditions puts the nation in a strong position for hosting future events. “This enables Brazil to commit financial guarantees from all three levels of government – federal, state and city,” says Carlos Roberto Osorio, Secretary General of the Rio 2016 Bid Committee.

“The combined governments of Rio and Brazil can guarantee an immediate USD 700m start-up fund for the Rio 2016 Organising Committee budget, ensuring the necessary cash flow to commence operations in October 2009 if the city is selected to host the Games. Moreover, a new Federal Fund of USD240bn has been ensured to finance new infrastructure projects across Brazil and will also be harnessed as part of the country’s preparations for the Games.”

Despite Brazil’s global economic stature, on a national level the majority of the population still lives in poverty. Is such a massive outlay really the best investment for the people of Brazil? President Nuzman thinks so. “Rio 2016 will be the Games of transformation for the people of Rio, Brazil and across South America,” he says. “The Games will deliver many years of inspiration, social change and sports development that will make a difference to the young people on the continent for years to come.”

The 2016 bid is connected to a broader government agenda of urban transformation. “Bringing the Games to Rio will help further accelerate some of the improvements. A good example of this is the planned regeneration of the historic port area, reconnecting it to the heart of the city. It will create 24,000 new apartments, offer skills training for almost 50,000 workers and create 65,000 new jobs – 15,000 permanent and 50,000 temporary in the build up to the Games.”

Finding a new continent
Hosting the 2016 Games in Rio de Janeiro would not just bring the Olympics to Brazil; it would be bringing South America to the Olympic Movement. “This would be a truly historic choice, opening up a new continent to the Olympic Movement and creating an exciting new story for the Games broadcasters and media,” says Nuzman.

As well as being a new young market, Brazil has the potential to provide a remarkable stage for international athletes, a spectacular location for sport, good performance temperatures and a breathtaking spectacle for visitors and television viewers. Brazil is also within a very convenient time zone for broadcasters who are rights holders to major sporting events.

“The Games in Rio promise to be a highly visual experience. We will ensure that both live spectator and television audience experience is spectacular. Sport will be staged in stunning locations and through our dedicated programme, will be screened at Live Sites in Brazil and across the world. Beach volleyball will be held on the iconic Copacabana beach, sailing on the Marina da Gloria with Sugarloaf Mountain as a backdrop, and rowing in the heart of the city on the beautiful Lagoa at the base of Corcovado Mountain and the famous statue of Christ the Redeemer,” says Carlos Roberto Osorio.

After China’s successful hosting of the Olympic Games in 2008, awarding the 2016 event to Rio would consolidate the BRIC nations’ centre stage position. “If Rio is given the honour of hosting the Olympic and Paralympic Games in 2016, it will send a powerful message to other possible bidding cities from emerging countries and send a strong signal about the possibility and the power of the Games as a truly global event,” says Nuzman.