Does the World Cup really bring economic benefits to Russia

“

In April, Russia, this year's World Cup organiser country, claimed the tournament would generate nearly $31 billion in domestic production growth for Bruto over the next 10 years. It cited tourism, investments in infrastructure and the subsequent effects of these investments as sources of projected growth.

But those promises are not always fulfilled. In response to Russian government projections, the renowned international rating company “Muddy” published a report expressing scepticism about the supposed financial benefits.

“Russia will have only short-term benefits from the world's”- the report said. “Pacific Standard” addressed a group of sports economists to discuss the real value a world has for the host country, and how the Russian government emerged in its high economic assessments.

In general, what does maintaining the world mean for the host country's economy? What factors, depending on the country, can affect it either positively or negatively?

John L. Solow (professor, University of Iowa, U.S.A.):

In general, economists do not believe there is much stable economic impact from hosting major sports events, as there are winners but also losers. This is the result

two reactions to these often overlooked events are replaced and collected. The replacement is the idea that people who spend money on entertainment in this major event would have spent that money elsewhere.

And so while restaurants and hotels near the event, they can collect more revenue, this happens at the expense of restaurants and other hotels. And the owners and employees of these restaurants and hotels and businesses that are suffering loss of revenue spend less. Hence, the multiple effect of successive rounds of spending applies to these declines.

John Vrooman (Vanderbil University sports economy professor):

The estimates of the net economic impact of hosting major sports events such as the World Cup in football are highly exaggerated by the host country. The overall direct impact is perhaps zero at best, due to the negative costs of blocking and reducing other economic activities.

There are also significant distribution factors that falsely give priority to the political agendas of the football industry and hospitality. As a result, the optimistic and multiproducing effects of the World Cup are clearly schemes designed for self-promising, with the aim of justifying state subsidies, for private professional football business.

How do the numbers provided by the Russian government explain differences and “Muddy '%s”? Is Moscow expanding economic benefits for some particular reason?

John L. Solow: Even Soci's Winter Games, I assumed they would bring regional economic development. Sochi, it was the most expensive Olympics ever accomplished, but today you can easily find photos of abandoned and destroyed objects, as well as empty hotels and looted apartments.

The same is true of the Beijing Olympics . Beijing (The Bird's nest) is still a tourist attraction, but the rest of the objects are abandoned and degraded. But why do governments make such claims? I'm not quite sure, but generally when politicians talk, I see what their particular interests are.

Some construction companies have made a lot of money to build these stadiums, and their owners often have political connections. So “is” taxpayer on future benefits, make a lot of money on contracts, and then when the benefits don't show up, and the taxpayers are stuck with the mouth... I've already realized my ambitions.

John Vrooman: The common rule is to shift December to the left for self-incentive and economic assessments of events politicised as the football world. So the most accurate estimate would be $3.1 billion.

The limits of the Russian economy and the state of domestic football both limit the widespread economic impact of the World Cup, as most of the benefits from this tournament will go to the ambitious Russian Premier League. Magnification of the economic impact of this major event is self-promising. /The world.al