The assessment of economic impacts of the FIFA World Cup 2010 on South Africa (PDF)

This essay is an analysis of the impacts of the 2010 FIFA World Cup on economic growth and economic development performance in South Africa. It explores whether economic and social progresses result from the most popular football event, or if these are generally overrated. Personal research has been conducted to examine the opinion of other people in regards to numerous
questions concering the economics of this tournament.

Firstly, it is examined that South Africa's investments, primarily in the construction and infrastructure sector, have short-term effects on the country's economic performance in terms of reduced unemployment and improved factors of production leading to economic growth, yet people criticized, that government investments were made into wrong projects instead of education, health care or adequate housing to stabilize social conditions. Poverty remains at the same excessive level, maintaining a persistent overall low state of welfare.

The second phase, involving a booming tourism industry in the country during the event, also indicates a short-term source of job creation and a significant increase in aggregate output. A benefiting short-term inflation might emerge due to high demand in the accommodation industry.

Lastly, there may arise a future growth in foreign investments in South Africa because of a better global percecption of the country, leading to longer lasting potential in economic growth and development, yet harder to identify and less tangible.

In conclusion, the economic impacts of World Cups do not necessarily result in the way as expected. There exist some positive short-term effects on the economy, but not to a great extent. If South Africa's tourism arrivals continue to grow and international corporations become attracted to this emerging market in the future, which is of course not perfectly predictable, there will be significant advanced performances in relation to economic growth and development in the country.