FIFA WORLD CUP 3
It is certain that the FIFA world 2014 had an enormous impact on theeconomy of the country. The state spent close to $15 billion in thepreparation for the world cup. This money went into the constructionof new stadiums, maintenance of airports, roads, and railroads.Additionally, the country engaged in a cleanup exercise in the slums,and this led to protests and clashes between the slum dwellers andthe police. The developments that the country realized within a shorttime and the employment opportunities were significant economic steps(Morpurgo, 2015). There were over 800,000 direct jobs for the peopleof Brazil during the world cup. Although numerous tourists attendedthe world cup, it is essential to note that the country was unable torecover the money that it invested in the preparations.
It is critical to note that some of the stadiums such as the one inManaus cost the country $315 million, and it was only used for fourmatches. The stadium also costs the state $250,000 every year formaintenance. This shows that the country spent a lot of money, butnever realized the economic benefit from tourists’ spending(Morpurgo, 2015). In the short run, the world cup had an adverseeconomic impact on the country. The number of visitors to the countrydid not increase as expected and this affected the country’seconomy negatively.
Whereas in the short term the world cup proved to be an economicburden to the country, it is crucial to note that the infrastructuraldevelopments and permanent employment opportunities will have apositive economic impact. The roads, airports, rails and other thestadiums will remain useful to the country for decades to come andtherefore will have a positive impact.
Reference
Morpurgo, G. (2015). Brazil and the World Cup’s economic impact– A look back. Retrieved from:http://kcleconomics.com/a-look-back-to-2014brazil-and-the-world-cups-economic- impact/