brazil and 2014 fifa world cup

Brazil is due to host the World Cup in three years’ time and the infrastructure development that this event calls for is tremendous. Brazil is expected to invest US$18.7bn for the 2014 FIFA World Cup which will fund 50 projects in 12 Brazilian host cities (Portal Brasil, 2010). The Minister for Sports claims that the development of Brazil to meet the demands of the event would greatly improve the country for the citizens.Hosting the World Cup requires the nation to be prepared in three main areas – the stadium, airport and transportation, and accommodation (De la Cerda, Fernandes, Huebner, Madanes & Suarez, 2011). Brazil is poised for growth since its foreign exchange policy is liberalized. The success of an event is not merely limited to whether the event was economically profitable. For most mega events economic benefits are overstated in order to justify the public expenditure by the federal government (Karadakis & Kaplanidou, 2010). It can cause tremendous debts as in the case of Montreal 1976 as it was burdened with capital and interest costs. as resources become scarce price inflation is likely for goods and services. The general population could also be burdened in terms of additional taxation to pay for the cost of hosting. Opportunity costs also arise when the government is unable to raise enough funds to host the event.A reasonable ratio between the profit generated and the costs incurred is based on short-term effects and is derived from induced demand stimulus (Müller & Moesch, 2010). However, an event can be sustainable only if the added infrastructure continues to generate revenue and pay for its maintenance. Sustainability is not limited to environmental concerns but can expand to other regions as well.This study has great significance because event managers/organizers globally would make conscious attempts while planning events to ensure minimum damage to the environment, to the people, to the nation.

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