This blog post is in response to Amanjot Chahil’s post. While I agree with some of Amanjot’s  points, I feel it is too soon to tell how this will affect the country’s economy. I want to respond in a way that somewhat defends the investments.

His blog post mentions that Brazil has spent 2.5 times that of South America for the World Cup. However, it is important to consider that Brazil’s GDP is about $2.2 trillion per year compared to South Africa’s $350 billion per year. The government has roughly put around $10-14 billion into the World Cup – which is less than 1% of the total GDP. It makes sense in my opinion for Brazil to spend so much more than South Africa because they have a serious connection to the sport – as it is often considered a “second religion” there.

(Image taken from Wikipedia)

Additionally, I feel that it is important to recognize that improvements to infrastructure are not necessarily only for the rich. One unique thing about the World Cup is that it is held in many cities around Brazil – which provides a more equal distribution of funds. Some of the locations of the new sporting stadiums are fairly remote, and this can provide opportunities for developing young athletes in these areas.

The last point is that the amount of tourism that the World Cup generates is outstanding. In fact, the Brazil Economic Research Foundation believes it could make $27.7.billion additional income. In conclusion, I agree with the decision to invest in something that the entire country enjoys – the beautiful game of football.