Upper Classes to See Most World Cup Benefit

This economic analysis suggests that recent policies will isolate the economic benefits of the World Cup to the upper classes.

Yet amid last minute projects to ensure that the stadiums are ready to host the international teams, fine tuning of the host cities' infrastructure and overall excitement, eviction campaigns against people living in low income housing and informal traders threaten to isolate the economic gains of the tournament to the upper crust of society.

A bylaw passed by the city of Cape Town restricts informal traders or street vendors from working in the city center. A communiqué from Cape Town's mayor, Dan Plato, on 17 February described his view of the effect of a large population of informal traders: "The current trading area has ballooned out of control, congesting and obstructing walkways and lanes." So the Municipal Council has restricted trading in the city center as part of other infrastructure developments in preparation for the world cup. "The creation of public market squares, along with the upgrade and renovation of walkways will transform the Town Centre into a world-class facility. This will ensure that Mitchells Plain is regarded as a bustling economic centre that is safe, secure and financially viable," Plato's communiqué added, but without presenting alternative economic activities for informal traders.

South Africa: Preparation for World Cup Disenfranchises Poor
MediaGlobal
March 3, 2010

The World Cup's Limited Benefit for South Africa

This article from the Independent Online offers a scathing analysis of the tauted and oversold benefits of the World Cup for South Africa, arguing that only a small faction of the country's elite will see any true positive impact.

The Cup is about a great deal more than sport, the crowds simply part of the backdrop - the cost of their tickets is almost irrelevant. But the political dividends for the ANC are significant and the nation's new elite will be disporting itself in front of the world's cameras.

The rest of the country will be enjoying a long holiday and the brief opportunity to forget the enormous burden of socio-economic problems.

There is no evidence from previous mega-events, or South Africa's current circumstances, that the World Cup will deliver any major benefit. Politicians traditionally lie about the projected economic and social outcomes of such events in order to requisition the resources required for their own political ends.

The best guess is a pitiful 50 000 jobs and growth of 0.94 percent of gross domestic product. The World Cup was never intended for the benefit of local residents.

2010 a new form of colonialism
Independent Online
November 18, 2009