POVERTY, POLITICS, AND THE 2010 FIFA WORLD CUP IN SOUTH AFRICA

Why is it that governments can find billions of dollars for global sporting events and little to deal with the grinding poverty that affects impoverished populations? Canada applauded itself for the $135-million in aid and disaster relief it sent to an earthquake ravaged Haiti while spending nearly $6-billion on the two-week long Vancouver Olympics. A similar contradiction is revealing itself in South Africa, where massive amounts of public and private spending on the upcoming 2010 Soccer World Cup are expected to salve a faltering economy and crippling poverty. Most South Africans, however, will see little direct or sustained economic benefit from the games let alone muster the funds to even purchase a ticket.

What is trumpeted as a branding and investment remedy to South Africa’s economic woes may very well become another Greek tragedy – where the legacy of the 2004 Athens Olympics has contributed to an economic meltdown. These global games offer dual incentives to both local and foreign business elites and little to a frustrated local population. On the one hand, investment, sponsorship and tourism opens new markets to foreign capital while local business elites profit from a heightened global image. At least, this is the story sold by both the state and World Cup planners. Central to this strategy is selling South Africa as a marketable and consumable brand.

The transition from apartheid to democratic rule in South Africa has been well documented. During this period, the pressures of both domestic and foreign capital forced the emergent African National Congress (ANC) government to follow the economic paradigms of the past and encourage foreign investment. The sanctions that once crippled the economy gave way to a period of increasing investment and relatively stable economic growth. Promoting a comfortable and gentrified image of South Africa perfectly serves the ruling African National Congress’s redistribution through growth policy that is intended to drum up foreign investment while selling off government owned assets. The Soccer World Cup effectively opens these economic and political spaces necessary to further neoliberal policies and development.

South African planners have estimated that the World Cup will contribute approximately $5.5-billion (U.S.) to the economy and create 415,000 jobs, but these figures – like the supposedly positive economic impact of the Vancouver Olympics – are ephemeral and unmeasurable. For the 50 per cent of South Africans living below the poverty line the games will not lead to better housing, healthcare or employment. Government and private sector rhetoric of ‘global competitiveness’ has also had to face the very real image of a South Africa still scarred by deep racial and economic divisions. The World Cup is the playing field for many of the debates dominating South African currently: the nationalization of mines and resource industries; land redistribution and privatization of energy and telephone services. This debate also reflects the bad blood and deep divisions between the ANC and its trade union and communist allies. The international football body FIFA, and its corporate sponsors, want South Africans to forget this debate is happening. Their belief that global games are beneficial to the world is not only highly misleading, but it presents neo-liberalism as the only solution to national economic development. It asks the leading question: How would South Africans get better roads and sporting facilities if not for the World Cup? Their discourse is hard to counter. Behind it are the powers of a world built upon power relations – adding the sexiness of sport gives great symbolic force to these unequal relations.

Like Coca-Cola and Adidas – both official sponsors of the World Cup – South Africa is a brand. To foreign investors and business elite, a stable rand and inflation rate are as desirable as a positive brand image before the world. Like Clint Eastwood’s Invictus, the complexities of ongoing struggles in South Africa can be reduced to inoffensive pabulum and fed to global audiences. The dominance of the global market in South Africa is now reified by liberal Hollywood spectacle. Globalization and brand recognition have led many nations to market their identities as international brands. In fact, many developing nations have little choice but to resort to these international spectacles to lure the brands and investment encouraged by the IMF and World Bank. As Essop Pahad, former minister in the Presidency told the 2010 National Communication Partnership Conference: “This event is about much more than sports – it is about Africa and Africa’s ability to host the world.”

For one month an estimated 400,000 fans will descend on cities throughout South Africa, and millions more will tune in to watch the largest sporting spectacle hosted, for the first time, by an African nation. Beer guzzling soccer fans at World Cup stadiums will have no choice but to down American Budweiser and Coca-Cola in terms with strict FIFA sponsorship rules. Fans will fill seats at stadiums costing over $1.8-billion (U.S.) and travel on railways and roads specially upgraded for them. From this vantage point they will see the World Cup’s real winners: Adidas, Coca-Cola, Emirates, Sony, Hyundai, Visa, Budweiser, Castrol Oil, Continental Tire, McDonalds, YingLi Solar and Indian IT supergiant Mahindra Satyam. In addition, there are five national sponsors, which include South Africa’s largest bank FNB, British Petroleum and the semi-privatized telecommunications company Telkom.

This spending in stadium construction and infrastructure renewal comes as the nation is experiencing its first recession in seventeen years with GDP growth for 2009 now in the red at -0.3 percent. High levels of private investment are supposed to dampen the negative impact of global recession, but as some analysts have pointed out, the games need to do more than just ensure a short-lived tourism boom. If public funds can be found to pad tourist seats, then funds can, and must, be found to deal with the impact of low economic growth on the most disadvantaged sectors of the population. Township shack dwellers, for example, whose numbers have grown by 50 per cent in the first ten year of post-apartheid democracy, have little to gain from billion dollar stadiums.

2 thoughts on “POVERTY, POLITICS, AND THE 2010 FIFA WORLD CUP IN SOUTH AFRICA

  1. “Why is it that governments can find billions of dollars for global sporting events and little to deal with the grinding poverty that affects impoverished populations?”

    Because, economically wise, when you donate, you won’t get it back. But when you INVEST it in a sport event, you are more likely to expect some return from it.

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