Citius, Altius, Fortius’: Save it for the economy

Source: The post is based on the article “’Citius, Altius, Fortius’: Save it for the economy” published in “Live mint” on 20th October 2023.

Syllabus: GS3- Economy- mobilisation of resources

News: India wants to host the 2036 Olympics. Historically, rich countries hosted these games. Hosting often costs more than the benefits gained. India should focus on economic growth before bidding. The Olympics may not be a wise investment now.

What are the implications of hosting the Olympics?

Financial Costs: Hosting often results in high expenses. For example, the Tokyo 2020 Olympics cost around $13 billion.

Maintenance Issues: Post-event infrastructures can be expensive to maintain. Sydney’s Olympic Stadium incurs a $30 million yearly cost.

Underutilized Venues: Some facilities remain unused after the event. Beijing’s Bird’s Nest, for instance, stands empty.

Questionable Returns: Tangible economic benefits for the host city or country are often minimal. Research from New York University suggests the economic gains don’t surpass the costs.

Regret Among Past Hosts: Some previous hosts, like London, have expressed regret, implying that the returns weren’t worth the investment.

What should India do?

Reevaluate Economic Priorities: The Olympics often costs more than the benefits gained. India should focus on other economic priorities.

Learn from Past Hosts: London’s Olympics minister regretted their decision to host, implying the benefits weren’t worth the costs. India should consider such experiences.

Evaluate the True Benefits: Research, like that from New York University, indicates the Olympics might not offer economic benefits higher than its costs. India should weigh this before bidding.

Address Pressing Needs: India has competing needs that urgently need attention. These should be prioritized over hosting events.

Wait for Economic Stability: Only if India continues to grow at 6-8% and addresses poverty should it consider hosting the Olympics.

Limit Expectations: Benefits from hosting are often intangible, like global visibility, rather than clear economic gains.