The Role of State and Private Sector in Elite Sports

Source-This post on The Role of State and Private Sector in Elite Sports has been created based on the article “Sanjay Srivastava writes: For a nation that aspires to Olympic glory, what is the role of the state?” published in “The Indian Express” on 13 August 2024.

UPSC Syllabus-GS Paper-2- Government Policies and Interventions for Development in various sectors

Context- Recent news about Vinesh Phogat’s Olympic disqualification and the Ambani family’s push to improve India’s sports performance has sparked a debate. It focuses on whether private wealth or state funds are better for supporting elite sports versus addressing public welfare.

What are the arguments against state funding of elite sports?

1) Public Welfare vs. Elite Sports- Promoting general physical activity improves public health and well-being, whereas sponsoring elite sports typically seeks private benefits and national recognition rather than directly aiding the public.

2) Lack of evidence for public welfare effects: –State funding for elite sports rarely enhances public health or benefits the general population, particularly in poorer countries. With fewer than 45 Olympic medals, India’s experience suggests that these investments do not produce significant returns.

3) Politicization of Sports– Political patronage in sports harms administration quality. Appointees often prioritize political goals over developing talent. This leads to ineffective state-sponsored sports programs.

What are the arguments to support private funding of elite sports?

1) Business Incentives and Efficiency- Private investment in sports aims for profits, with companies expecting improved public image, branding, and more medals. Unlike the state, private investments face strict scrutiny and performance metrics.

2) Advantages Over State Funding- Unlike state funding, private sector investments are closely monitored for effectiveness. This oversight can lead to better management and results in sports.

Read More- India’s Paris Olympics Performance- Challenges and Way Forward

Conclusion- The debate about state versus private funding for elite sports highlights larger issues of public welfare and resource use. Private investment often achieves better sports outcomes due to profit motives, but state funds might be better spent on basic societal needs.

Question for practice

What are the reasons against state funding for elite sports, and what arguments favor private funding for these sports?