Wednesday 1 August 2012

The Cost of Pride

So after four years the Olympics have returned, on this occasion to one of the most iconic cities in the world. London 2012 has been hyped to a degree previously achieved only by the Tim Henmans (Henmen?) and Andy Murrays of this world (it’s British. Go figure). Prior to the opening ceremony, details were minimal and bitter debates raged over issues such as who would light the flame. Now that the Olympics have begun, however, most of its audience have been suspended in a state of awe. Therefore I believe that a reality check is in order.

First, a harsh truism. Regardless of the sentiments of romantics, the Olympics are just another sporting event. One journalist aptly described them as “the world’s largest sports day”. And since they are a sporting event, they should be treated as such. Extricating outrageous sums of money from the taxpayer merely to fund a bunch of running races seems a bit preposterous. Danny Boyle’s opening ceremony cost £27 million. It included a very brief history lesson, some nurses, music and dancing. None of these have any sort of direct connection with sport. So why waste the cash? Ironic, isn’t it, that the first nation to make an entrance was Greece (oh how they could use £27 million).
In terms of sporting events only one realistically compares with the Olympics – the FIFA World Cup. The pride associated with hosting both these events is similar. When was the last time all national squads marched on to the pitch before the first match? Never. Has a love story ever been re-enacted at a world cup? Not on the pitch, in any case. This is where the Olympic organisers could learn a lesson. Despite both the World Cup and the Olympics being on the same scale, FIFA are generally not likely to splurge on an opening ceremony. Or get the queen to skydive into the stadium.

Second, some facts. Between 2005 and 2011, the British GDP increased by about 7%. In the same period, the USA saw a 20% increase in GDP. India’s GDP doubled. China’s tripled. Possibly sufficient evidence to highlight the UK’s lack of economic growth. Co-incidence or not, 2005 was also the year in which London was chosen as the host city for the 2012 Olympics. £11,000,000,000 (that’s nine zeros) spent on some sporting events is generally not beneficial to a national economy. In 2005, the Labour Government estimated the cost of hosting the Olympics to be £2.4 billion. Spending four and a half times that isn’t a bad start. The Public Accounts Committee estimates that the Olympics will cost a grand total of £11 billion, after all costs are factored in. That is a significant amount considering it comes from the working class.
Enough with the bloated numbers that are beyond comprehension. Consider this instead. At the opening ceremony of London 2012, countries like Tuvalu, Kiribati, Sao Tome, Palau, Micronesia, Tonga, Samoa, St. Kitts et cetera achieved a common unique feat. The annual GDP of each of these countries – that’s how much money EVERYBODY put together makes – is lower than the £478 million that it cost to build the Olympic Stadium. Add the approximate £766 million cost of buying back the stadium and the total cost amounts to £1.244 billion, causing the list of countries that achieve this feat to expand significantly. Lots of other things can be done with £1.244 billion. Half of Africa could be fed. Cancer could be cured. Billions of people could be vaccinated against disease. Minor public debts could be paid off. London could be painted yellow to celebrate Bradley Wiggins’ victory in the Tour de France.

Considering the fact that London has hosted other sporting events before, why build a new stadium in the first place? Crystal Palace may not be particularly glitzy, but since when has track and field been about the glamour? As for the opening and closing ceremonies, Wembley? Lord’s? The Oval? The Emirates? Twickenham? White Hart Lane? There are enough sporting venues in London to host the Olympics without needing a separate arena. And with regards to those who would argue that the stadium is the centrepiece of the Olympics, can I just say its appearance makes it as much of a national icon as Basingstoke. The Beijing Olympic stadium, as a comparable venue, certainly makes a more substantial visual impact, thereby fulfilling the role of a showpiece. This renders the £1.244 billion expenditure rather unnecessary. The wardrobe for that kind of shopping spree would be as large as the Olympic Stadium itself, which would therefore require a further investment. £1.244 billion of storage space to go with £1.244 billion of shopping.
In conclusion then, the Olympics have gone from being a celebration of sport to being one of the best ways to waste public funds. Agreed that a certain level of expenditure is required to organise the games, but if they were organised as what they are – games – and not as a matter of national pride/symbol of power/way to show off, then the economic impact would not be as much and therefore the British public would finally have a reason to rejoice.
-          Chap

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