Wednesday, October 10, 2012

Global economics and planning outcomes

Give an example of where global economics can have a good effect on local planning outcomes, and where the effect can be bad.


  1. Ziteng (Jim) Zhan 1203221October 11, 2012 at 11:41 PM

    Hosting an Olympic game provides long term benefits for the UK. As global tourist revenue received from hosting the Games was estimated to be around £3bn, providing a foreign venue for investment. At a local planning level, benefits is seen from the London Organising committee of the Olympic games, with an increase in temporary employment of staff, security necessitated from the rise of local spending of around £2bn. A rise of GDP from 0.3% to 0.4% at the global level uplifts the commercial revenue at the local level, so hotels, restaurants and retailers are expected to have a steady increase in output so to cope with the additional demand from overseas visitors. However, some tourists are deemed to experience transport disruption related to the Olympic Games due to the increase in production (output) of other businesses at the local level.

    European Union. 2012. The Olympics and Economics 2012. London: Goldman Sachs. [Online] Available at:

  2. It is important to highlight the link between global sporting events and global economics. Global sporting events provide a good example of globalisation and the flow of funds between nations; if you host an event, then hopes are that you will attract international funds that will help the national economy. However, this may not always be the case. The 2011 Rugby World Cup was predicted to bring in $782m to the economy, of which $411m was to be direct economic benefit. In reality though, visitors spent $540m ($242 less than the predicted amount) of which a mere $110m was “value added” (profit for the country’s economy). The little money made went towards foreign owned sponsors, alcohol breweries and airlines. The stalling of local small to medium businesses hindered local planning efforts related to economic development. However, it should be noted that these global events can “speed up” certain developments, e.g. Wynyard Quarter, therefore achieving local planning outcomes at a higher rate.

    Auckland Council (2011) Rugby World Cup 2011: Evaluation Report. [online] Available at: [Accessed: 14 Oct 2012].

  3. Events that attract the capital of the global economy to an area can have positive and negative effects for local planning outcomes. Such events include the Olympics, the Rugby World Cup, and the Commonwealth games.

    As stated above, there are a range of economic benefits which may be received when a place hosts an event such as the Olympics. Money is brought in, circulated, and multiplied within the economy. This has positive effects for local businesses, as well as the general work which goes into preparing a city’s infrastructure and streetscape as part of the event.

    However some of these preparatory works can result in people being disturbed and relocated, as was the case when India hosted the Commonwealth games in 2010. 30,000 people had to be relocated, disrupting communities and social ties. Further negative effects can accrue if there is a lack of strategic direction in planning the event. This was the case in Auckland with the 2011 Rugby World Cup, where central city restaurants and cafes did not experience the business predicted due to tourists being channelled towards the fan zone.

    Finally, with the costs of hosting a global event, money and focus may be channelled away from projects not critical to the event, such as social housing. Therefore, while there may be benefits in certain parts of the city, this may be at the cost of others in the way of planning outcomes.

    nkey003 1554216

  4. Hosting a sport event is a way to improve the connections between nations and improve the local economics. The FIFA World Cup 2010, hosted by South Africa, was a case that showing the importance of global economics to a nation. The FIFA World Cup encouraged South Africa to improve its infrastructure, which acted as a catalyst driving long-running infrastructure goals. It enforced the cooperation between agencies at every level of government and encouraged the government to set up well-planned policies to improve the transportation network in South Africa. Further, the event also provided more opportunities for job training and hiring for the previously unemployed. These overall had a positive impact on the national economic growing and improved the social well-being.
    However, the event also had some negative impacts to the society, mostly in the environmental aspect and social safety. While the FIFA World Cup is global event with lots of foreign visitors and the public transportation would serve an unprecedented number of passengers, South Africa’s government decided to put a lot of money into the improvement of their airport and transportation networks, including constructed and expanded the airport and highway upgrades. However, those projects gave a series of adverse effects on the environment, such as increased the emissions of carbon dioxide and the removal of trees due to constructions. Furthermore, as nearly people all around the world came to one nation, the crime in South Africa increased during that specific time period. Specially, as South Africa’s economy has grown faster than surrounding countries, illegal immigration has become an urgent issue. The increased illegal immigration for a nation will basically lead to other planning issues, such as overcrowding, housing and unemployment.
    Overall, the global sport events or other global economics may have positive impacts (mostly are economic and social infrastructures) on local planning outcomes, they can also raise the adverse effects and lead to other planning problems in the future.

    Pellegrino, Greg; Bam, Lwazi; Dutiro, Innocent. 2010. 2010 FIFA World Cup: A Turning Point for South Africa.

    khu009 1538849

  5. Liam Clark (1461140)October 17, 2012 at 10:28 AM

    Hosting a global sporting event that attracts a massive international audience such as the Olympic Games can have both positive and negative effects on local planning outcomes for the host country.

    There are a large amount of financial economic benefits which can be received and collected when a place hosts an international event such as the Olympics or the FIFA World Cup. Money and other commodities are brought into the country by international holidaymakers and is then circulated and multiplied within the national economy and can be used to make living conditions in the country better and the general quality of the work which goes into preparing a city for the event through things such as infrastructure increase to a higher standard. Small items such as national flags and commemorative memorabilia can also be sold by small businesses within the host country to visitors and residents which benefits the local economy.

    On the other hand, some of these event preparatory works can result in the living conditions of the people living in the surrounding areas, as well as the people who are involved in the works themselves being decreased. An example of this was during the 2012 London Olympic Games when Eastern European and Southern Asian workers were imported to help with preparing London for the games. The workers were housed in portable cabins which fitted ten to a room in cramped conditions and shared hygiene facilities which was unsanitary. They were also made to pay 18 pounds a day to live in these terrible conditions. Further negative effects can accumulate if there is a lack of a direction strategy involved in the planning of the event. This was the case in Auckland with the 2011 Rugby World Cup, where central city restaurants and cafes on the fringe of the fan zone did not experience the business predicted due to tourists being channelled towards the main fan zone by advertising and other signage. Fan zone streets such as Quay Street also did not have the capacity to hold the large amount of people who accumulated there to watch the games and the opening ceremony, many people were uncomfortably crammed together which was very bad indeed for the money and effort they spent on coming to New Zealand.

    Finally, with the costs of hosting a global event, money and focus may be channelled only to the aspects of the event and not to other critical areas such as government social housing which leaves the conditions of these houses in a negative state for their residents. While there may be benefits in certain parts of the city such as the central area, this may be at the cost of other fringing suburbs that really need a helping hand and financial aid.

  6. Global sporting events are a good example of where global economics has an affect on local planning outcomes, which may be positive or negative.

    Global sporting events, such as the Olympics, are fought to be held by cities as they give an economic boost to the area, with long term benefits. Also, projects that have a positive local impact are usually fast-tracked in preparation for such events. This was the case with Wynard Quarter for the Rugby World Cup in Auckland, which has become the catalyst for waterfront revitalisation in the city.

    However, a strong global focus spurred from these sporting events can also negative impact on local planning outcomes. The 2010 Commonwealth Games in New Delhi can illustrate this. Its outcomes were viewed as unbeneficial to the local population. For example, the accommodation in the athlete’s village in particular was criticised for its poor construction, yet it was to a standard much higher than the majority of other dwellings in the city. The costs of hosting the event did not trickle down to the local population and instead lead to short-term benefits towards the event’s nomads.

    Aaron Grey

  7. Large scale global events such as the Olympics or a World Cup event can have both positive and negative effects on the local planning outcomes. The benefits can be both short and long term. Primary benefits can include; using the event to catalyse existing development and growth strategies, providing opportunities for public private partnerships in order to achieve development goals, and a promotion of the city through media exposure of the event. Benefits are not always related to just the physical and economic realm, for example, The FIFA Soccer World Cup in Germany 2006 produced substantial environmental improvements through a Green Games programme, the Athens Olympics 2004 brought an enormous cultural heritage legacy in the restoration of ancient sites and buildings.

    However, sometimes the planning outcomes are negative from such events. For example, when the Rugby World Cup was held in New Zealand in 2011 local businesses and cafes were told to expect a positive economic boost. This was not the case in some parts of the country, especially in Auckland where cafes and businesses in the suburbs surrounding the CBD were outcast as a focus was put on the development of party central. This helps to show that it would be more beneficial to concentrate on and involve amenities the city already has as opposed to developing entirely new ones.

    Clark, G. (2008). Local development benefits from staging global events. OECD Publishing.

    Georgia Brown

  8. There are various impacts on a host country or city during a major sporting event which can bring about both positive and negative effects.

    The most evident positive impact of an event such as the Olympic Games or Commonwealth games is the increase in expenditure in the city. Due to the influx of foreign visitors to a particular place, the increase in money spent in the local economy can be very benefitial, with an increase in consumer spending of £750million during the London 2012 Olympic Games. Coupled with this, the planning for such events can propel mass planning investments in public infrastructure and transportation which will continue to benefit the country after the event has ended.

    Major global events can also have negative effects on local planning. Most countries host global sporting events in the hope that it will bring increased economic return to many sectors of the local economy, however, the RWC 2011 set up a fan zone which meant that it did not allow for retailers and small businesses outside of this main area to benefit and overall the RWC did not stimulate the local economy as expected. As well as this, the Commonwealth Games held in India reinforces the pressure to respond to global economics. India did not have the money for investment in infrastructure to provide for basic needs for the people of India, let alone large scale infrastructure for athletes. People were also shipped out of the main games area and were forced to live in unsanitary and overpopulated areas in order to make India look more appealing to foreigners. The money made through this period was not used to improve living conditions after the games and makes a clear point about how the pressure of global economics has little positive effects on the people living there.

    Ailish Collins

  9. The example of the Toronto film cluster in Canada highlights ways in which global economics can effect local economies and local planning.

    The Toronto film industry has a working relationship with Hollywood, many films are shot in Toronto and work is often outsourced both from the U.S.A to Canada and visa versa. In this way jobs are created for Canadians, mostly in terms of filming, editing and production. Though also, for aspiring Canadian actors and filmmakers this global-local dynamic may provide opportunities to 'make it in the big time'. In terms of planning this obviously creates jobs and growth the Toronto film industry and therefore the wider local economy, as well as potentially encouraging tourism through landscapes, scenery, and people in movies that will be viewed world-wide.

    Though as mentioned previously, work is also outsourced to Hollywood. Simply put, Hollywood can afford bigger and better stuff than the Toronto film industry, so films locally produced in Toronto are often dependent on Hollywood in order to get their films produced on a scale that is competitive world-wide. Although this is good in some ways as it helps the quality of film production overall, Hollywood has such an advantage that a relatively small local film industry has virtually no chance of competing and is therefore almost forced to work with Hollywood. This may cause a domination of values perhaps leading to sacrifices of artistic intent, 'financial bullying', or other such issues.

    My example did not include New Zealand so I have not researched this, but I would imagine similar effects have been felt in New Zealand, specifically through the Lord of the Rings films the upcoming film adaption of The Hobbit.

    J, Vang, C. Chaminade (2007)Global-Local Linkages, Spillovers and Cultural Clusters: Theoretical and Empirical Insights from an Exploratory Study of Toronto's Film Cluster. CIRCLE. Sweden, Lund University

    Matthew T.W. Youl 1583666

  10. The 2011 Ruby World Cup hosted by New Zealand is an example of where global economics can have both good and bad local planning outcomes. Preparation for the World Cup lead to the creation of the Rugby World Cup 2011 (Empowering) Act, which allowed the streamlining of important infrastructure and development. This led to investment in Wynyard Quarter, which is now a successful waterfront development. The overall success of the World Cup event has boosted the international profile of New Zealand due to media coverage. This allows New Zealand to capitalise on hosting similar future events, with the potential to attract further international funds.

    However, the execution of the event did have flaws, and poor planning decisions were made. For example, local authorities failed to accurately anticipate demand for Auckland’s public transport on opening night of the World Cup. The train system was revamped in anticipation of the World Cup, but failed to cope with the large crowds on the night, highlighting the flaws in our current public transport networks. Local businesses were also anticipating a boost in economic activity, but due to the focus placed on the fan zone and party central, businesses outside this area did not benefit as expected.

    Raheel Khan 1539665

  11. (Sorry for the late post)

    Global sporting events can illustrate how global economics can have both good and bad outcomes for local planning. Events of this nature can be seen as an opportunity for nations to stimulate their local economy and urban development through the increase of international capital being injected and investment into local development. This can be seen in the 2011 Rugby World Cup hosted in New Zealand which saw the development of Auckland’s waterfront through Wynyard Quarter, now a successful development, and the development of a ‘fan zone’ in preparation for the RWC. These developments helped stimulate the local economy to a degree through the intensification of businesses within the developments which in turn had positive effects for businesses within close proximity. However many businesses did not experience the projected increase in income that was expected. This would be due to the creation of new businesses around these developments rather than incorporating the businesses which already existed on the fringes. While the RWC did provide good outcomes in the form of successful development, it failed in truly stimulating the local economy with respect to the businesses that currently existed.

    Global sporting events can also place pressures upon a nation which may place stress upon the current planning system in preparation for the event. This can be seen in the 2010 Commonwealth Games hosted in New Delhi, India. The planning system in India can be described as ‘just in time’ planning and as such saw the preparation for the games through developments and infrastructure provisions to be substandard in many regards. Hosting this event could be attributed to the government’s bid to demonstrate that India is just as good as any other country as well as possibly being the key to future global investment which is the perceived outcome of such global events. While these are seen as positive outcomes, the planning system was unable to properly cope and as such saw many negative consequences as a result.

    Knight-Lenihan, S. (2012) Review, discussion and Assignment 2. Presented for Plan 332 Comparative Planning. University of Auckland.

    Sunit Patel

  12. South Africa's staging of the 2010 FIFA World Cup provides a good example of both the negative and positive effects that hosting such a global event can have on a country.

    The benefits are mainly long term, and can be placed into three main categories: Urban infrastructure, transport systems and public image/branding.

    -Urban infrastructure: In areas that would be frequently visited by supporters during the event, such as Ellis Park there was an urgency to develop urban areas and open space. Public squares, artwork and pedestrian mobility features were all incorporated prior to the event.

    -Transport systems: In Johannesburg the World Cup was the main reason behind the development of two large scale public transport projects: Bus Rapid Transit System and Gautrain (commuter train network). Both projects were highly necessary in a city with major congestion issues, however it is unlikely that they would be completed without the hosting of such a major event.

    -Public image/branding: The importance of this cannot be underestimated, as the ability to successfully plan for and host a global event like the FIFA World Cup shows that planners and local officials have the knowledge and organisation to carry out other projects. This is likely to increase confidence in planners, both at a local and national funding level.

    However there are some disadvantages to hosting major events. Apart from the obvious huge financial costs, organising the World Cup 2010 caused a significant drop in volunteers for local community projects in South Africa. The rising flight costs associated with the event caused many people to change their dates or drop out of aid reliant projects in the country. Such help, which provides funding as well as physical aid, is crucial to the planning in small communities and its absence could have significant long term effects.

    OECD, (2012), ‘Local development benefits from staging global events: achieving the local development legacy from 2012’.

    World Cup 2010 threatens community projects (2009, November 20). Wanderlust.


    Sorry for the late post here.

  13. There are various positive and negative impacts on local planning outcomes from global sporting events such as the Olympics.

    Over the past 20 years there has been a significant increase of countries bidding towards hosting events such as the Olympics which are percieved to have significant economic and social benefits for the city or region. When holding such an event, the host nation usually undergoes large-scale contructions in order to provide the adequate sporting faciliites and support infrastructures and services such as in accomodation, transportation, and telecommunication. These large scale projects undoubtedly produces more jobs, increase economic development and city awareness, and urban improvement such as large investments in public transportation systems. Barcelona which hosted the 1992 Olympics, there was significant investment in the transportation system and rejuventation of the urban and coastal area which now has attractive beaches, leisure facilities and a marina. Unemployment rates also dropped from 18.4% to 9.6% during 1986 and 1992.

    Although there large positive impacts of such events, it could also have negative planning issues. In some cases building large-scale contructions have consequently involved compulsory land purchase and housing relocation which lead to high increase in rent and house prices. In preparation for the 1996 Atlanta Olympics 15,000 residents were evicted from public housing in order to make way for game related infrastructures.

    These two example illustrates the positive and negative impacts of holding a global sporting event for the host nation. There are various social, economic, cultural and environmental outcomes that are positvely and negatively affected by a global sporting event.

    B. Houlihan; M. Malfas; E. Theodoraki.(2004).Impacts of the Olympic Games as mega-events. Proceedings of the ICE - Municipal Engineer, 157(3), pg 209-220.


  14. Global economics can be influenced by global sporting events such as the Olympics, Commonwealth Games, and Rugby World Cup. These events can have both positive and negative impacts on local planning outcomes. International meets of this magnitude require a lot of planning and attract capital from around the world which may result in economic benefits for the hosting country or city.

    A positive example of this can be seen in the recent 2012 London Olympics. A total of £5.906 billion was invested into the event including improving the infrastructure and constructing facilities which can be used in the future such as the home and flats in Olympic Park. The event itself increases consumer spending which results in economic output which benefits the local residents. This is beneficial in the long term as it stimulates the local economy.

    In contrast, the 2010 Commonwealth Games held in India had a negative effect on the local economy. There was not sufficient investment made into the infrastructure of the country let alone additional infrastructure for the athletes and guests. This resulted in facilities that were of poor quality that did not reflect on the host country well. In addition to this, the preparatory works resulted in the relocation of 30,000 people impinging on their quality of life and strength of community.

    Jessica Parulian

  15. When Beijing was selected as the host city of the 2008 Olympic Games, a golden opportunity was granted to the Chinese government to place China under a global spotlight on its own terms, potentially distracting from the government's shaky human rights record. The Olympic Games preparation produces a change of in the way of growth. The development from 2002 has been ever one of the best periods since Beijing’s reform and opening-up. The annual urban economic growth rate increases by 12.1% in the past five years, 1.3% more than that between 1997 and 2001. In 2006, the city’s production value amounted to 772 billion yuan, ranked the 10th in China, 2.1 times that of 2001. The per capita GDP calculated according to permanent residents reached USD 6,210, 1.9 times that of 2001. While economic aggregate being increased and development is being enhanced, the mode of economic growth has witnessed important changes on the track of scientific development. (China National Statistical Administration, 2007. )

    Reference: China National Statistical Administration. 2007.

  16. In terms of the economic impact of hosting an Olympics, there are also other short-term benefits that derive from the additional expenditure in and around the Games itself as well as long-term benefits that are less tangible.

    The Chinese Organising Committee of the Olympic Games calculated that it has spent around 20 billion yuan in total—in relevant infrastructures and planning expenditure, temporary employment of staff, security, etc. Hoteliers, restaurateurs and retailers are also likely to witness an increase in output as they cope with the additional demand from overseas visitors. Set against this, however, some tourists may avoid coming to the Beijing because of the Olympics and the output of other businesses is likely to suffer as a result of transport disruption related to the Games.

    The long-term benefits of hosting the Olympics include the promotion of Beijing and the whole China as tourist venues and as potential locations for foreign investment, as well as the lasting impact on the local community from regenerating a previously run-down part of Beijing. By their nature, these effects are more difficult to estimate but they are not necessarily less important than the short-term effects.

    Boya Chen 1540113

  17. There are many different benefits and negative effects on the local economy and community from hosting world events such as sporting events like the Olympics, or rugby and football world cups, or other world events can also have a great influence on the local community such as large conferences and expos like the world expo. These mega events act as triggers for local development holding short and long term advantages to the host city and country. Mega events are catalysts for economic transformation, help upgrade infrastructure, fosters an innovation-minded environment, strengthen the international image of the city and accelerate the implementation of desired urban policies.

    China is a great example of how hosting world events can have great and bad effects on the local planning outcomes of the area. The 2008 Beijing Olympic games hosted a great increase in urban development for the city and number of short term benefits like those identified earlier however the post event benefits have not lived up to the grandeur of the games period itself. The use of the stadiums and arenas has declined significantly and although tickets are still sold to tourists to visit the stadiums, this source of income for the arenas is steadily decreasing.

    The 2010 shanghai world expo is an example of a mega event in china that has had multiple positive outcomes for the local community and has improved from the Beijing Olympics in 2008. The urban regeneration of the city was significant in the success of the expo in that it maintained the success and benefits of the event even after with the continued use of facilities and infrastructure developed for the expo.

    Sean Stirling

    United Nations, Shanghai Manual – A Guide for Sustainable Urban Development in the 21st Century, Available online:

  18. Zoeya Kamal 1462661October 26, 2012 at 11:42 PM

    Global economics seems to have both positive and negative effects on local planning outcomes in regards to global sporting events. This was seen through the 2011 Rugby World Cup event that was hosted in New Zealand. This event successfully created:

    - The Rugby World Cup 2011 (Empowering) Act
    - Several new jobs in the advertising and tourism industry
    - Slight boost in economy
    - Public transport became cheaper i.e. free bus trips around the city
    - Investment in Wynyard Quarter, which is now a successful waterfront development
    - Media attention and world recognition on the improving state of New Zealand.

    The 2011 Rugby World Cup event allowed New Zealand to be seen as a nation that is capable of hosting similar events in the future. However, this event had substantial impact on both the locals and tourists. The event highlighted New Zealand's flaws and poor planning decisions. For example, people were not diverted to areas that seeked to gain advantage with this increase in people for the event. The areas that had actually had prepared themselves for the increase in tourists seemed to not have accesses to these tourists. Poor planning from local authorities resulted in tourists being pushed away from central economic areas and as a result not creating the boost in economy that was expected. In addition, another major negative impact in hosting the event was the pressure on public transport. Trains failed and were delayed for several hours when there was an increase in passengers. What was worse was that on the night of the opening of the World Cup, trains were stuck half way to the event and no alternative method of going to the event was suggested when the trains failed . Global economics therefore have both positive and negative effects and can identify the strengths and weaknesses in local planning.