When Brazil was selected as a host country for the 2016 Olympics near the end of 2008, its economy was on the rise, and the country hoped the 2016 Olympics and World Cup would mark its brilliant achievements.
Jump to 2016 and Brazil’s economy is on a historic downturn. Their GDP is expected to contract by more than 3% for the second straight year. Rio’s official expenditure for the Olympics is estimated at 7.4 billion dollars, but others have put it between $14-20 billion.
The ledger is still being balanced for the impact of the 2016 Olympic Games on Brazil’s and Rio’s economy.
Negative: The Olympics in Rio de Janeiro were dogged by mismanagement and allegations of corruption.
A key issue in creating popular support for the games had been that the games would provide funds for better services for the city’s poor. However, Rio developers have been accused of using the games as a cover for the relocation of people living on desirable real estate which was occupied by poor neighborhoods, favelas.
A perfect example of this is the construction of the Olympic Village and the Olympic Park. Both projects are located in Barra de Tijuca, a rapidly developing area with desirable waterfront real estate. Construction there resulted in the displacement of close to 600 people living in Vila Autódromo, a slum in close proximity to both the Olympic Park as well as the Olympic Village. Throughout Brazil a similar pattern emerges as an estimated 67,000 people have been displaced from their homes in favelas since 2009 when Rio first won the bid. Now that the Olympics have finished, the Olympic Village has been turned into luxury apartments with costs ranging from two hundred thousand to over one million dollars, and much of Vila Harmonia has since been paved over to provide access to the Olympic Park. The roughly 20 families who refused to leave Vila Harmonia were given nicer housing in the same location after they staged a bloody resistance against the government’s authority to evict them.
For those who left, the new housing created is touted as affordable and an upgrade. While this may be true, residents are now far removed from their doctors, schools, and work. Many have lost their jobs and are hard pressed to find the same sense of community in their new neighborhoods.
Some of these construction projects have also been mired in allegations of corruption. Recent investigations into Odebrecht, a state-run construction company, have revealed a list of politicians who were supposedly given compensation for pushing to give Olympic construction contracts to the company. Eduardo Paes, Rio’s embattled mayor, is among those listed.
As typical of Olympics, overruns occurred especially as projects were accelerated to meet deadlines. Money was poured into many developments with poor oversight.
Brazil’s difficulties with the Olympics construction conincided with several high level corruption scandals. Marcelo Odebrecht, CEO of Odebrecht, a diversified Brazilian conglomerate, Latin America’s largest construction company, was sentenced in March to 19 years in prison on charges of money laundering and corruption. His conviction sours any possibility of Brazil moving past the corruption scandals, which include impeached president Dilma Rousseff.
Positive: However, the benefits of some construction projects could be and long lasting. new bus lines, improved train stations have provided increased access to areas which lacked adequate transportation in the past, and areas have seen new schools and other projects created. Through the Olympics, Brazil’s government was able to finally advance many civic projects which had stagnated, in particular one to revitalize Rio’s ageing Zona Porturuária. Located in Rio’s Centro district, the finances for its renovation were primarily derived from private companies who were given tax breaks to develop in the area. A new science museum, Museu do Amanhã, is but one of many noticeable improvements to the area. Development is expected to reinvigorate the area with many famous festivals and concerts given new life.
These renovations mirror a similar trend to previous Olympics; in 2012 London completely overhauled their blighted East Side, and in 2008 Beijing vastly improved their transit system’s capacity while also spending millions to improve air quality.
Along with these physical improvements to the city, a shift in perception is expected after Rafaela Silva, a black woman born in the famous City of God favela, won Brazil’s first gold medal of the games in 57kg Judo. Previously a victim of racism, she is now lauded as a hero in her community. In London’s 2012 Olympics she was disqualified for an illegal hold, much to the dismay of Brazil. Brazilians voiced their complaints online, attacking her with racial epithets and other forms of abuse. Racism has long proliferated Brazil, and it has only seemed to intensify in the modern age of internet anonymity. The hope is that her success will spur on future progress in a city and country which has long been criticized for their mistreatment of its Afro-Brazilian population.
The benefits of the construction in Rio should be amazing, and the increased international scrutiny should help to illuminate many of the problems which had previously been ignored. Much progress still needs to be made on many fronts, but the Olympics was still mixed in their efforts. Some construction projects will only benefit the wealthy, and is plausible that the end of the Olympics marks a return to the norm of corruption and mistreatment. However to mark Rio’s Olympics as a failure is to ignore the future implications of projects created by the Olympics and initiatives which have been accelerated as a result of The Games.
