Rio de Janeiro Photo: Getty Major Events The BRT express bus system is at the heart of Rio’s transport strategy for the 2016 Olympic Games. Above: Control center; below: The Alvorada BRT terminal. drove Paes to run for the mayor’s job. He believes it was a similar impulse that spurred thousands of marchers to flood city streets across Brazil last summer to protest corruption, poor quality of life, and unequal distribution of the benefits from Brazil’s decade-long economic boom. President Dilma Rousseff responded by announcing a raft of measures, including the promise to spend US$23 billion on local mass transit projects. “It’s not a movement that’s particular to Brazil. You see it in the USA with 18 urbanDNA · Issue 3 / December 2013 Occupy Wall Street. In Spain, it’s the economic crisis and youth unemployment, and in the Middle East, we are still witnessing the Arab Spring,” says Paes. ”People feel they are not being represented. They want to participate more, and be part of the business of politics.” Visionary Politics Born into a nonpolitical family in Rio, Paes became involved in student politics as a high school student in the mid-1980s, when Brazilians were clamoring for an end to military rule. His talents were recognized on a local level, and he was appointed deputy mayor of Rio at age 22. He then went on to serve in the city council, in the National Congress, and as Rio de Janeiro state minister of culture and sports. Paes says mayors have increased responsibility to forge visionary policies for the welfare and happiness of their constituents because of everincreasing urbanization and the devolution of power to city governments. “Mayors are the ones who will get things done,” Paes believes. “Issues that previously were not the responsibility of mayors, like economic development, are becoming more so. The reason is that everyone is coming to the cities. I saw from the moment I became deputy mayor at age 22 that the best way to help people was to become mayor.” The World Cup and the Olympics “are going to call a lot of attention to the city” – and put Rio and its urban infrastructure under intense scrutiny, a challenge that the mayor clearly relishes: “Despite all the problems we still face in Brazil and in Rio, we are going through the best moment in our history.” p When the Party’s Over Are major international events worth their high cost in terms of the tourist dollars, image boost, and “legacy” public infrastructure that they generate for the host city? Olympic Games, FIFA World Cup tournaments, and Expo World Fairs are opportunities for governments to promote and “rebrand” their cities for vacation and business travelers. These mega events accelerate the construction of mass transit, housing, and other urban development projects that otherwise might take decades to get done. Text: Chris Kraul Chris Kraul is a freelance journalist with many years of experience covering news from various South American countries. He was formerly a foreign correspondent for the Los Angeles Times in Mexico and Colombia. urbanDNA · Issue 3 / December 2013 19 Major Events Major Events I 20 urbanDNA · Issue 3 / December 2013 Above and previous page: The Coliseum, venue of the opening ceremony at the 1984 Olympics in Los Angeles. The 1984 Summer Olympics, held in Los Angeles, USA, were the first Games financed by private funding. Olympics serve as catalysts – as long as they help a city develop what needs to be developed. promising those glitzy structures is often what it takes to win, states economist Victor Matheson, a professor at the College of the Holy Cross in Worcester, Massachusetts. Formerly known as the World Fair, the World Expo movement also nearly died – but has been given a new lease on life by the success of the Shanghai World Expo 2010, which attracted an astounding 73 million visitors and refashioned the Chinese city’s image. Probably as much as any mega event in recent history, the Expo achieved for Shanghai what most cities target as their Olympics “legacy” goal – the jump-starting of sustainable energy, urban renewal, and mass transit projects that planners see as shortcuts to improved quality of life (Siemens, in its role as the Expo’s Global Partner, contributed more than US$1.3 billion worth of clean lighting, air, and water technology to the exhibition). The debate is heating up in Brazil as the country prepares for a double dose of global exposure, starting next summer, when Rio de Janeiro and 11 other cities play host to the 2014 FIFA World Cup matches. Then, in 2016, Rio goes it alone to put on the Summer Olympics, the mother of all sporting extravaganzas. The Games will attract billions of TV viewers and as many as 3 million foreign and domestic visitors, many of whom will be seeing for the first time this gorgeous city, which is synonymous with beaches and bossa nova. The following snapshots of three Olympics host cities and the Shanghai World Expo illustrate past lessons and future expectations. Los Angeles Olympics 1984 Photos: Getty, Aurora / José Azel s the acceleration of a city’s development agenda, and the public spending that goes with it, worth the cost of hosting mega events such as the Olympic Games? As recently as the early 1980s, when the Olympics movement nearly died after a succession of Games marred by economic and public image setbacks, the answer was a resounding no. But now, after sterling experiences in cities such as Los Angeles, Seoul, Barcelona, and London, the consensus among economists is that Olympics are “catalytic” events for their urban hosts – as long as they “help a city develop what needs to be developed,” according to Holger Preuss, an economist at the University of Mainz in Germany. With the skyrocketing costs attached to the events – upwards of US$50 billion in the case of Russia’s Sochi Winter Olympic Games in February 2014 and more than US$45 billion for the Beijing Summer Olympic Games in 2008 – residents have a right to demand a close accounting of risks and benefits. The Games themselves typically generate no more than US$3 billion to US$4 billion in tourism, advertising and broadcast revenue over the 17 days they are held, says Alan Abrahamson, a journalism lecturer at the University of Southern California and award-winning sportswriter and TV analyst. Therefore, the huge investment in structures, public transportation systems, and other “legacy” items must promise a longterm benefit. And while urban dwellers can readily comprehend the value of new mass transit and expanded airports to ease the path for visitors, they increasingly resist the idea of “white elephant” buildings like stadiums and swimming complexes that fall into disuse after the closing ceremonies. The dilemma is that, with competition among cities reaching fever pitch to win host status, bidders find that Los Angeles won the right to host the 1984 Summer Olympics by default. There were no other bidders, so profound was politicians’ disenchantment with the event. The 1972 Olympics in Munich had been stigmatized by a terrorist attack, the 1976 event in Montreal by massive public debt, and the 1980 Games in Moscow by the boycott of 45 countries, including the USA. “The movement was truly in danger of extinction,” says Olympics expert Abrahamson. To the rescue came California businessman Peter Ueberroth, who organized a completely privately financed Olympics. But it wasn’t easy: The refusal of the LA city council to accept municipal responsibility for putting on the Games meant the IOC had to change its charter to allow for private management. Ueberroth then signed up 70 companies that paid US$130 million to be sponsors in exchange for Olympics branding and endorsement rights. Except for a velodrome and swimming facility, the 1984 Games used only existing structures, many of which, including the Memorial Coliseum, had been built for the 1932 LA Olympics. Due to the low overhead and tight purse strings – Ueberroth signed off on all expenses over US$1,000 – the Games returned a US$215 million operating surplus, which Ueberroth donated to youth sports organizations and other charities across the USA. In addition to the corporate sponsorship model that host cities follow to this day, Ueberroth also introduced the concept of Olympic torch relays, a unifying event that builds fan excitement. If the 1984 Los Angeles Olympics is vulnerable to criticism, it’s for the almost total lack of legacy mass transit infrastructure that Los Angeles was and still is so badly in need of. But Abrahamson says that very omission is what made the Games economically feasible. “It’s misleading to say there is no legacy because the infrastructure was already here. The legacy that really matters is that the LA Olympics saved the Olympics movement.” u Los Angeles Olympics 1984 • July 28 to August 12, 1984 • 140 participating nations • Boycotted by Eastern Bloc nations in retaliation for the West’s 1980 boycott of the Moscow Olympics • Generated an operating surplus of US$215 million • Carl Lewis is most successful athlete with four gold medals in the long jump and the 100-m, 200-m, and 4x100-m relay races, setting a new world record in the relay. urbanDNA · Issue 3 / December 2013 21 Major Events Major Events Barcelona Olympics 1992 22 urbanDNA · Issue 3 / December 2013 Barcelona Olympics 1992 By all accounts, the Barcelona Olympics in 1992 set the gold standard for a successful event. The city leveraged its “moment in the sun” to achieve the prominent position in global tourism that it enjoys today. But the success was due in large part to a propitious moment in the city’s history and because the local government had an existing development plan that the Games helped accelerate, says Andrew Zimbalist, an economist at Smith College in Massachusetts. When Barcelona got the nod to be host city in the mid-1980s, it was still a tourism backwater and recovering from 40 years of poverty and dictatorship under the Franco regime. “It was a city of great charm and hidden gems that had not been exploited,” Zimbalist says. That was before hundreds of millions of viewers were exposed to the city and its culture. Now, Barcelona is among the top five European tourism destinations. The designation as host city set in motion Barcelona’s ambitious urban “regeneration” plan that has remade the face of the city. The Olympic Village was built in a run-down, 130-hectare industrial area near the waterfront and became the catalyst for redevelopment of a 5-kilometer stretch of docks and warehouses that opened the city up to the sea. Barcelona commissioned world-famous architects to build landmark sports structures that are still in use by locals, as well as a trade and convention center in the port area designed by noted architect I. M. Pei. The Above: The “Pez y Esfera” sculpture by US architect Frank O. Gehry is a landmark of Barcelona’s Olympic Port district at Passeig Maritim. complex has helped make Barcelona become by some measures the world’s preferred international convention site. “The Barcelona city fathers saw the Olympics as a way of accelerating the modernization they already had in mind,” Zimbalist notes, adding that historic zones such as the then-rundown Gothic Quarter and Montjuïc areas were spiffed up to make them tourist-friendly. To smooth the flow of visitors, Barcelona modernized its El Prat international airport and built a new tram system to connect the redeveloped port area as well as a ring road around the city to ease congestion. And once the athletes went home, the city didn’t drop the ball. It formed the Turisme de Barcelona marketing entity that helped promote the city as a convention and visitor destination even during the post-Olympics doldrums. u The Montjuïc Communications Tower, designed by Santiago Calatrava, transmitted TV signals from the 1992 Summer Olympics. Photos: Getty, Laif • July 25 to August 9, 1992 • 170 participating nations • Marked the beginning of Barcelona’s ascent to become one of Europe’s major tourist destinations • The Games accelerated a waterfront development and ambitious architectural program that transformed the face of the city. • Long-term benefits include construction of trade and convention center, tram network, and ring road. urbanDNA · Issue 3 / December 2013 23 Major Events Major Events Shanghai really injected new energy into the Expo movement. More than 200 countries and organizations took part in the World Expo 2010, many of them with their own pavilions. 24 urbanDNA · Issue 3 / December 2013 Photos: Getty, Laif, Expo 2010 Press Shanghai World Expo 2010 If Olympics and World Cups are designed to attract individual tourists and sports fans, promoters of the Shanghai World Expo seemed to reach for whole countries and corporations as its target audience. On a national scale, the Chinese got maximum use from the Expo as an instrument of public and cultural diplomacy. On a local level, Shanghai’s six-month exposition was seen as a coming-out party for a rapidly growing city of 19 million with ambitions of becoming a global economic hub. All indications are that Shanghai effectively used the Expo’s “soft power” to convey self-confidence, business friendliness, international cooperation, and environmental awareness. The numbers tell the story. The Expo lured 192 countries and 50 organizations as exhibitors and a staggering 73 million visitors, including more than 1 million on a single day. Holger Preuss believes Shanghai transformed the century-and-ahalf-old Expo concept by virtue of the sheer dimension of exhibits, its theme of environmental consciousness, and extensive additions to public infrastructure, especially mass transit. “It was the largest Expo ever and will remain so for some time to come,” Preuss says. “In terms of conceptualization, Shanghai really injected new energy into the Expo movement.” As the Expo’s Global Partner, Siemens played a central role in conveying the Expo’s primary theme of environmental responsibility. Among Siemens’ Malawian President Bingu wa Mutharika (second from left) views the model of the China Hall of the 2010 Shanghai World Expo in March 2008. “green” contributions was energysaving technology at the coal-fired energy plant at Waigaoqiao that supplied the Expo with one-third of its electricity. The company also supplied to pavilions a total of 150,000 LED light bulbs that consume 80 percent less energy than conventional incandescent bulbs. To streamline and economize mass transit for Expo visitors, Siemens delivered key components for 100 high-speed trains running on the newly dedicated Beijing to Shanghai line. In addition to the energy-efficient, ultramodern exhibits and upgrades of its two major airports, the six new subway lines that Shanghai opened between 2006 and the Expo’s inauguration sent a message that China as a nation is much more than just supplier of cheap labor for global manufacturers. It is also a country that knows how to deal with a rapidly urbanizing population. u Shanghai World Expo 2010 • April 30 to October 31, 2010 • 73 million visitors from around the globe, 192 participating countries, 50 participating organizations • Over 1.7 million volunteer staff • Shanghai experienced a 13 percent increase in tourist visits during the Expo 2010. • Costs of day-to-day operations: 11.964 billion yuan (US$1.96 billion); operating profit: 1.05 billion yuan (US$170 million) • Major development projects: airport upgrades, six new subway lines urbanDNA · Issue 3 / December 2013 25 Major Events Major Events Rio de Janeiro Olympics 2016 • August 5 to 21, 2016 • The 34 event venues are located in four main Olympic clusters: Barra da Tijuca, Copacabana, Deodoro, and Maracanã. • Opening and closing ceremonies to be held at the Maracanã Stadium, the largest Olympic venue with a capacity of 90,000 spectators • Several of the venues will also host events at the 2014 FIFA World Cup and the 2016 Summer Paralympics. 26 urbanDNA · Issue 3 / December 2013 Above left: Model of the renovated Maracanã stadium, site of the opening and closing ceremonies. Above right and below: 3D renderings of the Olympic Village. transportation problems across Latin America. Rio is just one of 26 Brazilian cities that operate BRTs. Rio is also taking Barcelona’s port redevelopment scheme as the template for its own harbor-side renewal project Porto Maravilha. The 1,200-acre area that once consisted of grimy warehouses and abandoned factories is being converted into a multiuse housing-office-museum district in hopes of drawing businesses, tourists, and more residents. A 5-kilometer overhead viaduct that cut off the port zone from the rest of the city is being torn down and replaced with a tunnel. Connecting the redevelopment area with the nearby commuter airport will be a European-style light rail tram. The city is also pouring money into improving living conditions at Rio’s 60 favelas in hopes of reducing the segregation of low-income residential districts and better integrating residents from vastly differing socioeconomic backgrounds. p Photos: Rio 2016, Erica Ramalho Rio de Janeiro Olympics 2016 As host of the Summer Games in 2016, Rio de Janeiro is following the successful playbook established by Barcelona in 1992 in pushing forward long-deferred mass transit and urban development projects, Mayor Eduardo Paes freely admits. The overriding purpose of having the Games is ultimately to make Rio a more livable city for cariocas, as local natives are called, and if the mega event fails to accomplish that goal, the Games will not have been worth hosting, he said in an interview. Barbara Kotschwar, a research fellow at Peterson Institute for International Economics in Washington, is convinced the World Cup and the Olympic Games will “promote Brazil’s new stature” as a regional power and emerging economy that by 2020 could be the world’s fifth largest. But to join the global elite, Kotschwar says, Brazil must improve its public infrastructure, and the pressure on the government created by the Olympics may help. Brazil’s airports rank 134th out of 142 countries in terms of efficiency and its road system ranks 123rd out of 142. “In both categories, Brazil falls short of what you would expect of a country that wants to be an influential global player,” she notes: “If the infrastructure development that’s being spurred by the Olympics allows people in Rio to get to their jobs faster and less expensively and with less congestion, that could be a real boost to Brazil’s overall economy.” The city is placing big bets on improving mass transit by the time the Games open in June 2016. Projects include a new subway line and three new Bus Rapid Transit (BRT) routes set to open before the opening ceremonies. The bus lanes will ease visitors’ access to four Olympic event “nodes” and ease Rio’s crushing traffic problems in the longer term. BRTs are dedicated bus lanes for highcapacity vehicles running on cleanburning fuels and carrying up to 200 passengers. They have become highly favored answers to urban urbanDNA · Issue 3 / December 2013 27
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