Economic Development

Onward to Rio

September 27, 2012

Global

September 27, 2012

Global
Denis McCauley

Consultant

Denis McCauley contributes to EIU research published on a bespoke basis in Europe, the Middle East and Africa.

He works closely with the research directors and editors in each of these regions to improve the insightfulness, relevance and timeliness of their analysis.

Mr McCauley previously directed the company's global technology practice, with responsibility for managing research projects dealing with the impact of information and communications technology (ICT) on businesses and societies.

He is often interviewed by the media, including the BBC, CNBC and Financial Times, for his views on technology industry developments.

After London 2012, all eyes now turn to Rio de Janeiro, the host of the next summer Olympics extravaganza.

After London 2012, all eyes now turn to Rio de Janeiro, the host of the next summer Olympics extravaganza. In our report on the impact of such events, we argued that, for most cities, a long-term boost in terms of jobs and GDP is probably a stretch. But one should not scoff at benefits taking the form of international prestige (Beijing) and regeneration of key parts of the city (the example of Barcelona, and potentially London).

Regeneration is the chief objective for Rio's mayor, Eduardo Paes. He says that Rio is "trying to use the games as a good excuse for getting things done" in three areas: transport, regeneration of the city's port area and the gradual urbanisation of its favelas, the sprawling shanty towns which are home to nearly one in every five residents. By investing in metro, rail and bus rapid transit systems, he wants to grow the share of residents using "high-capacity transportation" from 18% to 63%. He wants to regenerate the port area by establishing a new residential and commercial centre to replacing its disused warehouses. And he wants to completely "urbanise" the favelas by 2020, using the Olympics as a lever to accelerate change.

High hopes, but are they realistic? Barcelona showed that such objectives can be met, and Mr Paes is trying to borrow the best elements of the Catalan capital's approach. We can be certain of one thing: Rio will certainly pull out all the stops.

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The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views of The Economist Intelligence Unit Limited (EIU) or any other member of The Economist Group. The Economist Group (including the EIU) cannot accept any responsibility or liability for reliance by any person on this article or any of the information, opinions or conclusions set out in the article.

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