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How does the World Cup affect the macroeconomics and microec

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Jared Jared

on 27 April 2015

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Transcript of How does the World Cup affect the macroeconomics and microec

Expectations
How will Brazil pan out?
Let's Assess
South Africa's state
before it's World Cup
South Africa after the World Cup
Short term effects
Brazil's Current State
How does the World Cup affect the economics of the host country?
Spending

Total of 4 billion dollars

1.5 billion dollars on stadiums

5 brand new stadium and 5 renovated stadiums

2 billion dollars on improving infrastructure
GDP growth 2.8%


Created about 130,000 jobs

Transportation improved

Events in stadiums
Final Conclusions
South Africa Before the World Cup
World Cup was expected to
Contribute $7.8 billion

Generate at least 500,000 jobs

Add extra $2 billion from fans
More short term effects
Long term effects

Improved public relations with other countries

People want to return

Attract interest from international investors
Brazil's Current State Evaluated
Inequality
Economic regional differences

Rich neighborhoods neighboring poor ones = common
Protests
Government spending causing chaos

Millions took to the streets

Safety?
Poverty
Has been decreasing
Still very high
From 2003 to 2009
21% 11% poverty
10% 2.2% extreme poverty

7th wealthiest country
Experiencing infrastructural issues
Problems resolving
Steady economic growth
Why This Matters
Explains current controversial matters
Media
Fluctuating revenue
Investment shifts
Public safety
Governmental corruption
Growth Acceleration Plan
$526 billion
Could terminate growth
Growth Acceleration Plan
Expected to inject $526 billion into infrastructural projects
Sewer systems
Power plants

Expected to put $90 billion back into the economy by 2019
Assuming all goes well
Inflation
Not what Brazil needs
Corruption with projects
World Cup Expectations
Past Predictions
U.S. World Cup (1994)
Expected to boost economy
New fans & business support
No true economic effect

South Africa (2010)
Expected to boost economy
New investors & international ties
Initially turned out positive
No true economic effective
Disappointment from expectation

Expectations of Costs/ Benefits
Just in World Cup projects
$18 billion cost
$14 billion from tax-payers

120,000 jobs will be created per year of preparation
$ 70 billion from both direct and indirect investments

Very Optimistic
Sectors Benefiting
Tourism

Expected to double from 1.4 million tourists per year to 3.3 million
Hotel/ Retail industry +
Construction and Electricity
Leading up to events
Telecommunications
Transport
GDP
Declined 1.7%
Per Capita $10,000
Trying to become a super power
Local industries improve
Amount of visitors went up
Personal Reflection
Outcomes of South Africa
Did not meet expectations

Benefited in short term

Long term unclear

Overall: little effect
Outcomes for Brazil
Population unrest
Social issues
Government spending

Expectations look positive
Growth Acceleration Plan
Help Brazil or not?
Money paying off
Industries benefiting

Past predictions
U.S. and South Africa

Prediction
Brazil will disappoint
Research
Paper

Making it different from presentation

Works cited

Expanding on facts

Connecting ideas

Learning how to use vocabulary
Presentation
Finding good sources
Extracting information
Learning process
Evaluating and Analyzing information


Using prezi

Editing videos

Making collage

Working together

Poverty
50%
24% unemployed
10% paying taxes
Protests
Poor education
Negative Effects
People without jobs
Was expected to do more
Jobs
Visitors
Money, only 11% back
Useless stadiums
Environment
Predictions
Brazil will most likely bust
Predictions of previous Cups
United States
South Africa
Gigantic Investments
Unlikely to pay off soon
Poor planning
Not meeting deadlines
Investments cannot pay off
Poor conditions
Poverty / Inequality
Shifts investments

Full transcript