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Rio World Cup and Olympic Legacy: Economics

September 13, 2011 | Filed under2016 Olympics,Business | Posted by Helen Trouten

By Helen Trouten Torres, Contributing Reporter

RIO DE JANEIRO, BRAZIL – It may be no coincidence that recent mega-events have been awarded to countries with developing economies; the 2008 Beijing Olympics and 2010 World Cup in South Africa were both hosted by BRICS. The events are capable of generating unique enthusiasm in a worldwide audience and present lucrative financial opportunities and have become an imperative for nations trying to attract international investment.

The 2016 Olympic Games attracts major multinational sponsors like GE in August, photo by Rio 2016.

Recently, The Rio Times reported on the expected2014 World Cup and 2016 Olympics legacy for the city and country in terms of infastructure. In the second part of this series, we now turn our attention to the predicted legacy of the mega-events on the Brazilian economy.

Rio 2016 spokesman Bernardo Domingues explains, “The expected gross economic impact of the 2016 Games on the Brazilian economy is US$51.1 billion, according to a University of São Paulo study commissioned by the Ministry of Sport in 2009.”

Bruno Reis, Managing Director of Exclusive Analysis’s Brazil office, pegs the World Cup figure even higher, stating “The 2014 World Cup will involve R$142.39 billion of investments in Brazil, of this, direct investment between 2010-2014 will be R$29.6 billion.”

Reis breaks those numbers down to: “42 percent will come from the public sector and 58 percent from the private sector…As regards indirect investment, such as salaries that return to the economy, the estimate is R$112.7 billion.”

For Rio’s Olympic’s legacy on Brazil, Reis estimates direct investment at approximately R$30 billion between 2009-2016, with indirect investment estimated at R$90 billion.

There are high hopes in terms of employment rates. Sectors related to tourism, construction, electricity, IT, telecom, creative industries and financial services are the sectors that will see the most job creation, says Exclusive Analysis’s Brazil office. Around 120,000 jobs per year are expected to be created as a consequence of the Games until 2016, and then a further 130,000 jobs per year until 2027 according to research by the Ministry of Sport.

There is expected to be a massive boost to the tourism industry as well. According to Embratur, 1.4 million tourists visit Rio every year and this is expected to more than double, increasing to 3.3 million. For Brazil, the goal is to increase the number from 5 to 10 million visitors annually. The World Cup alone is expected to generate R$5.94 billion for the tourism sector according to Reis.

Mayor Eduardo Paes presents figures of Rio hotel chains, photo by Beth Santos/Rio City Hall.

“About 12,000 new rooms are predicted to 2015. 5,400 of them are already under construction. Rio de Janeiro has an extensive agenda of major events happening the next years, culminating with the Olympic Games in 2016,” said Mayor Eduardo Paes.

The Riotur President, Antonio Pedro Figueira de Mello, announced: “We will leave an unprecedented legacy. We are not only enlarging hotel capacity, but we are also attracting new investors to Rio, exciding IOC’s expectation and demands.”

Experts note the economic benefits gained by the organizing committee of the Games through improved practices of public administration, as was reported in Barcelona. While under the World Cup and Olympic spotlight, local and national governments are often forced to take political steps to showcase their strengths and conform to international political pressures.

President Dilma Rousseff already stepped in to put pressure on the World Cup preparations, holding public officials accountable for progress or lack thereof. In Rio, the above mentioned Maracanã Stadium is expected to be ready on time, but at a cost of nearly R$1 billion, approximately fifty percent more than originally estimated.

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LETS GET MARRIED AFTER SCHOOL TODAY

Brazil: Nearly 43,000 Kids Under 14 Married According To Census

09/13/11 01:01 PM ET   

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RIO DE JANEIRO -- Census figures from 2010 show that nearly 43,000 children under 14 years of age are living with a partner in Brazil in defiance of laws forbidding these unions.

Brazil's penal code prohibits marriage with children under 14 and defines sex with them as statutory rape.

Helen Sanches is president of the Brazilian Association of Judges, Prosecutors and Public Defenders in Juvenile Court. She was quoted by the Estado de Sao Paulo newspaper Tuesday as saying that it's not uncommon for families to ask the court for permission to marry off a daughter younger than 14. She says many are unaware that it is against the law.

The states in which these unions are most common have the country's lowest per-capita income.

Conflicts in Complexo do Alemão

Recent Conflicts in Complexo do Alemão Favela

September 13, 2011 | Filed underPolitics | Posted by 2011 Newsroom Intern

By Zoë Roller, Contributing Reporter

RIO DE JANEIRO, BRAZIL – In the past week the Complexo do Alemão in Rio’s Zona Norte (North Zone) has seen several clashes between civilians and UPP (Police Pacification Unit) officers. While no new incidents have been reported since September 7th, the unrest spurred officials to reevaluate UPP strategy in Alemão. These events mark the largest shootout between police and civilians since the community was invaded by peacekeeping forces in November 2010.

Rio's Complexo do Alemão favela from above, photo by Zoë Roller.

The unrest started on Sunday, September 4th, when an alleged noise complaint escalated into a street fight. Police fired rubber bullets and pepper spray into a crowd of civilians, who retaliated by throwing rocks. On Tuesday evening violence broke out again: Ana Lucia da Silva, a fifteen year-old on her way home from school, was killed, and a 47 year old man identified only as Luis was hit in the head by shrapnel from a grenade.

Da Silva’s death made international news, but reports disagree on the exact circumstances. According to the Associated Press, officials denied any fatalities in Tuesday’s altercation; later that day, however, Al Jazeera reported that the young woman was killed, and sixteen others wounded by stray bullets.

Al Jazeera also stated that heavily armed drug traffickers from a yet-to-be-pacified neighboring favela raided police units on Tuesday and opened fire on officers. AP confirms this statement, but citizen journalists claim the only shots fired came from police.

Walmir dos Santos, a longtime resident of the Complexo do Alemão, was skeptical about traffickers invading the favela. “They don’t have images, they don’t have audio—there’s no proof. This is just to sell papers…It’s to create panic.” He added, “It raises another question: if the police have no proof that there were traffickers, why were shots fired?” Many residents saw bullets streaking across the sky on Tuesday night, though they were unsure who was firing.

General Adriano Pereira Júnior, commander of the Eastern Military Command, announced that the shots were fired from Baiana and Adeus, two hills within the Complexo that were not officially within UPP’s jurisdiction. “Alemão and Penha do not have heavy weapons,” the general said. On Wednesday, over one hundred Military Police occupied the two hills, with more reinforcements on the way. Soldiers set up barricades blocking access points to the community.

Morro da Baiana in the Complexo do Alemão favela, photo by Zoë Roller.

City Councilman Zaqueu Teixeira stated that leaving the hills unoccupied “allowed confrontations alongside the army’s forces,” and made it clear that UPP “can’t have vulnerable points.”

Governor Sérgio Cabral admitted that UPP’s securitypolicy is fragile, and announced that the pacification units would undergo a review. State Security Secretary José Mariano Beltrame confirmed that traffickers had reentered Alemão, but he did not disclose how many or where they came from.

In an official statement, the Security Secretariat said that the violence was prompted either by the closure of an illegal gas business belonging to a trafficker’s brother, or the army’s extended occupation of the area. It was announced on August 30th that troops will remain in Alemão and Penha until July 2012, and 2,200 new soldiers will be added to the 1,700 already there.

On Wednesday, city councilman Marcelo Freixo visited the community to talk to residents about their views on UPP. He found that while most people welcomed the peacekeeping force, they wanted government presence in areas other than security. “The State brought in military forces, but there’s not an investment in the areas of health, education, or sanitation.”

Freixo added that until residents in the Complexo feel they can trust UPP officers, further conflict may be unavoidable. “There is great strain within that community. And the lack of tact can cause military conflicts … Residents do want the police presence, but there are complaints about their treatment.”

MISS UNIVERSE 2011

Miss Universe 2011 pageant crowns Miss Angola, Leila Lopes

View Photo Gallery —  Leila Lopes crowned Miss Universe 2011.

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The annual Miss Universe pageant was held in Sao Paulo on Sunday night, and Miss Angola, 25-year-old Leila Lopes, took the crown after impressing judges with her striking cream-colored gown and insightful answer to the final question. Lopes is the first winner the pageant has ever selected from her country. After she beat 88 other competitors from around the world, she was crowned by last year’s winner, Ximena Navarrete, from Mexico. The Associated Press reports:

FINALE TEN-MISS COSTA RICA

Tica finishes in top 10 in Miss Universe 2011

Posted: Tuesday, September 13, 2011 - By Ellen Weathers

Miss Angola takes the crown. Contestants from Costa Rica and Panama led the way for Central America, finishing in the top 10. This was only the 2nd time that a Tica has placed in the final 10 at Miss Universe.

Johanna Solano, Miss Costa Rica, finished top 10 in the world at Miss Universe 2011. Courtesy of Miss Costa Rica

Costa Rican Johanna Solano, 20, placed in the top 10 at the 2011 Miss Universe pageant. The Heredia native gained a reputation for her impressive athletic ability after playing in the Miss Universe exhibition soccer game and awed viewers with her swimsuit and evening gown.

The 2011 Miss Universe pageant welcomed 89 women to São Paulo, Brazil to compete for the crown before a worldwide television audience in 170 countries. Contestants lived in São Paulo for three weeks where they dazzled the local media and enjoyed samba lessons, golf and soccer.

“I consider myself to be a positive and active person," Solano said during a brief video segment during the broadcast. "I really enjoy playing all kinds of sports.”

Solano entered the competition as one of the favorites. She was cut after making it to the top 10. However, her finish is tied for the best in country's history. She will continue her reign as Miss Costa Rica until March 2012.

Leila Lopes, 25, of Angola was crowned Miss Universe 2011 after charming the judges and audience in a bright yellow bikini and cream-colored strapless dress. Lopes gained support from locals in the audience after speaking Portuguese during the question-and-answer round. Angola was once a Portuguese colony.

Lopes’ platform is HIV awareness. A 2009 UNICEF report estimated that as many as 250,000 are living with HIV or AIDS in Angola. 

GOING, GOING ,GOING

Issue CXXX - Weekly Edition: September 7 - September 13, 2011
Dollar Climbs to R$1.70 Against the Real: Daily
September 13, 2011 | Filed underDaily Update | Posted by Contributing Reporter
By Brennan Stark, Contributing Reporter

RIO DE JANEIRO, BRAZIL – The U.S. dollar rose 1.78 percent against the Brazilian real according to Monday’s closing figures. The rise effectively leaves the dollar worth just over R$1.70, its highest level since December 2010, but still well below its five year high of R$2.50 in December 2008.


The dollar climbs to highest value against the real since December 2010, image by Yahoo Finance.
Although the U.S. economy continues to struggle, economic crises in Greece and Italy have diverted some to pull funds and investments and direct them at the less risky U.S. market.

“Everyone is very afraid of a Greek default,” Andre de Carvalho Ferreira, director of Nova Futura DTVM Ltda., a brokerage firm in Sao Paulo said in an interview with Bloomberg. “You never know what’s going to happen. There’s no upside to hold the real. There’s more to go.”

The last eight consecutive reports have indicated that the dollar has strengthened and, according to Abucater dos Santos, manager of foreign exchange at brokerage company ICAP Brasil, the dollar’s trend could continue to rise until it reached R$1.80.

One possible reason, dos Santos suggests, was early September’s cut in the basic interest rate in Brazil from 12.5 to twelve percent per year.