The tax loophole Fifa imposed on the World Cup’s developing nation host country was what originally attracted me to this piece. As I read more though, the post became less about “the Death Star that is Fifa,” as David Smith of South Africa’s Mail & Gardian put it, and more about how bad of an idea it was for the country’s leaders to take on this tournament.
With South Africans’ dreams of soccer glory dashed by the elimination of their Bafana Bafana from the tournament today, fans may now be hoping that at least the World Cup will deliver on the economic boost its organizers have repeatedly promised them. They are likely to be disappointed again.
“We want, on behalf of our continent, to stage an event that will send ripples of confidence from the Cape to Cairo—an event that will create social and economic opportunities throughout Africa,” former South African President Thabo Mbeki said in the run up to the tournament. While Mbeki touted the international attention the World Cup would bring to South Africa, the government of his successor Jacob Zuma has made much of the attendant infrastructure improvements. Following a victory by Bafana Bafana in a friendly against Columbia in the newly renovated Soccer City stadium on May 27th, the national spokesman of the ruling ANC party issued a celebratory press release suggesting that the upgrades would “make the country ready to meet the many demands of a growing economy.”
The headline figures in a report from accountancy firm Grant Thornton released on the eve of the tournament seem to support the politicians’ claims. Despite the dampening effect the recession and weak global recovery have had on attendance, their study predicted that World Cup could add as much as half a percentage point to South Africa’s annual gross domestic product. That would be a huge boost for a country where GDP is only expected to grow by some 2.5 to three percent in 2010.
But there is good reason to question those figures…
Click here to read the rest of the post for TNR‘s World Cup blog or to make a comment.
Photo credit: AfricanGoals2010 (via Flickr)