There is a lot that we should
know about the People’s Republic of China especially when our Chinese friends
are in a state of immense exhilaration on a peculiar occasion of holding the
2008 Olympic Games in Beijing the capital of China. The substance below is the
extraction of some of my research results and university study experience in
Beijing to introduce our people a facet of economic development of this growing
super power.
The Olympic Games impingement on Chinese economic development is of a “demand
impact” type. The Olympic Games economic impact could be seen mainly through
revenue and disbursement, investment and output streams. In this case, cost to
hold Olympic Games' is actually an economical investment. As per marginal costs
phenomenon, the bigger the investment is; the economic growth impact it brings
would be bigger too.
According to China’s economic growth analysis, Beijing Olympic Games contributed
3-5% for the country’s GDP growth. And because of the Olympic Games’ enormous
sports characteristics and the cultural connotation; the preparation time was
longer than usual, which acquired a huge investment, and massive participation
of government and semi government organizations. That is the reason why Beijing
Olympic Games' influence and total impact had already surpassed any other social
or cultural event with economic benefits in our global arena.
If we look back, after1984, any host country for Olympic Games had to take steps
in realizing the Olympic dream with massive funding and spending to meet the IOC
demands. As the statistics are revealed, the Olympic Games offices, sports
complexes and facilities are costing little more than ten hundred million USD to
10,000,000,000 USD of capital. This number can very easily make you think that
the Olympic Games are a multiplex comprehensive phenomenon for an economic
development, and it also highlights its importance and foresightedness in the
international development.
From macroeconomics explanation of the Olympic Games' economic impact, Olympic
Games initiate demand for infrastructural investment, traveling exports,
multimedia exports, commercial and trade revolution, mass production, and
employment opportunities with a direct and multiplier effect influence.
From another end, if we analyze the Olympic Games' source of revenue, the IOC
carries an immense proportion of funding on to host city's subsidization for
holding the games within the given time frame; moreover the committee has
remarkably flexible options for an increase in this revenue proportion for the
host country, lucky beijingers would apparently be having fingers-in-till while
spending over Olympics.
Drawing from the Olympic Games experience of cities such as Los Angeles,
Montreal and Barcelona, by holding 2008 Olympic Games, china would not only be
in a much better shape of avoiding stumpers that occurred in the past but it
would also be helpful in increasing revenue, reducing disbursement and expanding
the games influence to incarnate sustainable social and economical development.
On the upcoming Beijing Olympic Games, statistics department of the Central
Government in Beijing used the term “Olympic Games Economy”, and declared that
it would give a hike not only to Beijing’s economical situation but also the
nearby economic sectors such as Tianjin, it’s predicted that this region’s
growth proportion is to reach 1.23%.
The Australian Finance bureau report says, in 2000 Sydney Olympic Games, the
demand for the labor force was huge. Synthetically, in China's situation,
present unemployment is a structural unemployment, and according to Beijing
government, the Olympic Games economic wave will bring the employment
opportunities to a new peak, to achieve this target, Olympic Games Committee has
designed to carry out the correspondence education and training to enhance human
capital and strengthen competitive skills. A report says this unemployment
cut-down measure will create 2,100,000 employment opportunities for the country.
According to Beijing Olympic Games report, in 2008 fiscal budget, Beijing
Olympic Organizing Committee budget credit is 1,609,000,000 USD, and the
budgetary revenue is 1,625,000,000 USD, the disbursement for the projects will
be including environmental protection, roads and railway communication and
airport construction expenses, which in total makes up an amount of
12,385,000,000 USD; if we add up other projects including the sports complexes
and the Olympic Village, the number would be 1,871,000,000 USD. Recently, the
State Statistical Bureau spokesperson pointed out that only Beijing's Olympic
Games investment mounted to 40,000,000,000 USD, 64% of which is used in the
infrastructure.
A recent analysis report forecasts that Beijing Olympic Games will boost china's
economic growth to another 2%. The technical factor is that, Olympic Games will
refine and improve china's fundamental resources, and it will improve the
production process for an even more intensified use in country’s economics
development, an estimate is that this kind of improvement or increase will fuel
the economic growth engine till the year 2015.