China's Estimated $42B Spend On Beijing Games Drawing Criticism
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China Spending Estimated $42B To
Host Upcoming Beijing Olympics |
China's record spending on the Beijing Olympics, estimated to total $42B, is a "big sum for a developing country to put into a two-week sports show," and "at least some of the spending is drawing criticism for wastefulness," according to Fowler & Meichtry of the WALL STREET JOURNAL. Of the $42B tally, which was calculated by the government-run Beijing Olympic Research Center, Olympic facilities and operational costs "account for [US$4.65B] of that total, with another [US$10.47B] on efforts to clean up the environment." The "majority -- about [$26.42B] -- has been spent on infrastructure development, including roads and highways." However, some of China's Olympics projects are of "questionable long-term value in a nation with such pressing needs." The Bird's Nest National Stadium, for example, "has no clearly defined purpose after the Games -- and no roof to protect it during the city's frigid winters and hot, rainy summers." And even Chinese cities "not hosting the Olympic events are getting Olympic-level makeovers." But China "can afford the financial cost of the biggest Olympics in history." The bill "amounts to a small fraction of the country's [GDP], expected to be nearly $4[T] this year, and corporate sponsors have underwritten some of the costs." Most of the spending "isn't going toward running the Games, but toward roads, subways and airports" (WALL STREET JOURNAL, 7/16).
BUSINESS TRIP: The WALL STREET JOURNAL's Mei Fong notes in addition to "thousands of athletes, more than 80 heads of states and about 30,000 members of the media, another group is expected to invade Beijing in force for the Olympics next month: corporate executives." The number of CEOs planning to attend the Games is "likely to rival the number at the annual World Economic Forum meeting in Davos, Switzerland, which often attracts more than 1,000 business leaders." WPP CEO Sir Martin Sorrell, who is planning to attend the Games said, "It goes beyond just a wonderful sporting occasion. There are political and economic implications. You could call it a sporting Davos." Execs planning to attend include Microsoft Chair Bill Gates, GM Chair & CEO Rick Wagoner, McDonald's CEO Jim Skinner, Volkswagen CEO Martin Winterkorn and GE Chair & CEO Jeffrey Immelt. However, Fong notes "space -- as well as tickets -- may be tight" (WALL STREET JOURNAL, 7/16).
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