Note4Students
From UPSC perspective, the following things are important :
Prelims level: Olympic Games
Mains level: Not Much
Central Idea
- Prime Minister Modi recently confirmed India’s formal bid to host the 2036 Olympic Games, raising questions about the financial implications and benefits of hosting this prestigious event.
About Olympics
Origins | Began in ancient Greece in 776 BCE in Olympia. |
Revival | Revived by Pierre de Coubertin in 1896 in Athens, Greece. |
Five Rings | Olympic flag features five interlocking rings representing unity among 5 continents. |
Olympic Motto | “Citius, Altius, Fortius” (Faster, Higher, Stronger) reflects the pursuit of excellence. |
Sports Included | Features a diverse range of sports, from athletics and swimming to archery and gymnastics. |
Discontinued Sports | Some sports, like tug of war and live pigeon shooting, have been removed. |
Selecting the Olympics Host City
- International Olympic Committee (IOC) Decision: The host city is chosen by the International Olympic Committee members through a secret ballot, with the majority vote determining the winner.
- Competition and Diplomacy: Securing the opportunity to host the Olympics involves significant financial resources and diplomatic efforts. Typically, winners are announced 7-8 years before the event.
Cost of Hosting the Olympics
- Expensive Endeavor: Bidding for the Olympics is a costly proposition, with countries spending $50-100 million, even for unsuccessful bids. In case of a successful bid, the expenses can soar into billions of dollars.
- Examples of Expenditure: Tokyo spent $150 million for its failed 2016 bid and even more for the successful 2020 bid. Toronto refrained from bidding due to the $60 million cost for the 2024 bid.
- Infrastructure Investment: Hosting the Olympics entails building stadiums and enhancing infrastructure to accommodate athletes and tourists.
Funding the Olympics Expenses
- Local Government Responsibility: The majority of expenses, especially on infrastructure, are shouldered by the local government and are spread across the country’s budget.
- Borrowing for Cost Overruns: Countries often resort to borrowing to cover cost overruns. The IOC contributes some revenue to the host country, but it constitutes a relatively small amount, e.g., $1.5 billion for Rio De Janeiro in 2016.
Assessing the Worth of Hosting the Olympics
- Benefits of Hosting: Hosting the Olympics elevates a country’s global status, promotes it as an investment and tourist destination.
- Cautions on Overspending: Excessive spending can have dire consequences, as seen with Canada’s 30-year debt from the 1976 Montreal Games, the impact on Greece’s financial crisis after the 2004 Athens Olympics, and Rio’s $900 million bailout request from the Brazilian government.
- Positive Outcomes: In some cases, such as Beijing, hosting the Olympics led to significant GDP growth acceleration, by at least 0.8%.
India’s Prospects
- Favorable Timing: India’s bid aligns well with its status as the world’s most populous and fastest-growing major economy.
- Past Experience: Having previously hosted the 1982 Asian Games and the 2010 Commonwealth Games, India possesses a favorable track record, which the IOC takes into consideration.
- Gujarat’s Bid: Gujarat is contemplating bidding for the 2026 Commonwealth Games, which could further demonstrate India’s hosting capabilities.
- Economic Power: India’s ascent as an economic powerhouse enhances its candidacy’s appeal to other nations.
Conclusion
- While India’s bid to host the 2036 Olympics presents an opportunity to boost its global profile and economic prospects, it is essential to strike a balance between ambition and fiscal prudence.
- The economic implications, positive and negative, of hosting such a monumental event should be carefully evaluated to ensure that the effort and investment yield substantial long-term benefits for the nation.
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