Impact of the FIFA 2014 World Cup

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IMPACT OF 2014 FIFA WORLD CUP IN BRAZIL

Impactof the FIFA 2014 World Cup

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Theworldcupis one of theeventsthat everycountrywould liketo due to theeconomicbenefitsthat comewith it.Forthepast20 years,theworldcuphas generateda lotof revenueto thehostcountriesdue to morethan 100% returnon investment.Duringthe2014 worldcupin Brazil,a similar case was observed.Theeventhada lotof economicreturnswith a fewshortcomingsof theeconomy.

First,theworldcuppreparationscostthecountrymorethan ten billion dollars.Theten billion wasusedto maketheinfrastructurefavorabletotheevent.Roadswererenovatedas wellas an expandednationalgridto reachmorepeople.Thecitizenswereableto usetheseresourcesto generateincomebecauseitfavoredtheir economicactivities.

Secondly,theeventlastedforone month.During thisperiod,thethirty-twoteamsparticipatinghadtheir campssetup in differentplaces.Thehotelindustrybenefitedfrom their stay.In anticipationof themanyvisitors,thetourism industryinvesteda lotof moneyin thetwelve cities.Foreverydollarinvestedduring thisperiod,theremorewill be generatedannuallytilltheyear2027.

Theeventcreatedmorethan fifteen million jobswithin theone monthitlasted.Thesejobswerenot terminatedimmediatelyafter theworldcup.Thesmallbusinessenterpriseaccountedfor40% of thesejobs.Consequently,theirGDP shotup.

However,theworldcupwasconcentratedin 12 citiesonly.Mostof thebusinessinvestmentsfocusedtowardsthesecities.Therestof thecountryexperiencedwithdrawalsandsnubs in preferenceforRio de Janeiro andtheothercities.

Brazillike otherdevelopingcountriesoperateson a tightbudget.Hostingtheworldcupledtoa diversionof fundsto servicetheinfrastructurefavorablefortheevent.Thenormalwayof fundingcitizens`affairsduringthepreparationswas disrupted.

Inconclusion, theworldcupbenefitsare not short-term. Peoplewill enjoy the benefits fora longtime.Thefewconsitbroughtcould not be entirelyavoidedbearingin mindthatthecountryis not yetfullydeveloped.

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