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How Much Has Hosting the World Cup Cost Brazil?

Jerrad PetersNov 11, 2013

As of this week, only seven months remain until the 2014 FIFA World Cup kicks off in Brazil. Later this month, the countdown clocks will show fewer than 200 days remaining until the big event.

And yet, six of the tournamentโ€™s 12 stadiums remain unfinished, and airport upgrades are well behind schedule. Other infrastructure projects, meanwhile, have been either significantly altered or cancelled altogether.

In a blog post earlier this year, reputed Brazil-watcher Andrew Downie wrote that โ€œfive citiesโ€”Brasilia, Fortaleza, Manaus, Salvador and Sao Pauloโ€”wonโ€™t have the promised tram lines, express lanes for buses or metro links ready, according to Brazilโ€™s Federal Audits Court.โ€

The costs of hosting the World Cup, however, continue to increase.

Once pegged at less than $1 billion USโ€”and much of it supposedly from private fundersโ€”the price of stadium construction and upgrades has now eclipsed $3.5 billion, according to Forbes, and when the various infrastructure schemes are added to the tally,ย Bloomberg estimates the final number will surpass $14.5 billion.

But Aldo Rebelo, the countryโ€™s Minister of Sport, has continued to insist the World Cup will provide a โ€œlasting legacy of economic growth,โ€ and just over a year ago he told the BBC he expected the tournament to boost Brazilโ€™s economy by around $90 billion.

Then there are the 3.6 million jobs, both short-term and long-term, the competition is expected to generate, according to Bloombergโ€”the same number the 2016 Olympics will likely require.

To that end, itโ€™s important to view Brazilโ€™s spending in the context of both the World Cup and Olympic Games as the cost of the two events will be almost identical.

Social cost

But itโ€™s the World Cup that is first on the agenda, and as the worldโ€”nevermind Brazilians themselvesโ€”found out last June, the cost of putting it on has been more than merely financial.

During the 2013 Confederations Cup, as it began to sink in that tens of billions of Reais were being spent on stadiums while transit fares continued to go up and funding for schools and hospitals remained stagnant, at least 80 Brazilian cities were rocked by protests as citizens demanded better social services.

โ€œWe need more investment in schools and hospitalsโ€”not monumental works,โ€ a Cuiaba resident told Bloomberg even before the Confederations Cup began.

And just last month, footballer-turned-congressman Romario called for his fellow politicians to โ€œwake up,โ€ adding that continued demonstrations were they way for social issues to get the attention they deserve.

โ€œYou see hospitals with no beds; you see hospitals with people on the floor,โ€ he told the New York Times last month.ย 

โ€œYou see schools that donโ€™t have lunch for kids; you see schools with no air-conditioning...You see buildings and schools with no accessibility for people who are handicapped.โ€

What Romario and many of his countrymen have seen are lavish venues in places that likely wonโ€™t be able to sustain them when the World Cup is over as well as a cash-grab by FIFA, who invested nothing in Brazil to stage its signature event but will leave when itโ€™s finished with considerable profits.

โ€œFIFA got what it came for: money,โ€ the 47-year-old said. โ€œThey donโ€™t care about what is going to be left behind.โ€