在發展中國家舉辦世界盃足球賽對於經濟和社會之影響: 針對2010 南非世足賽排擠窮人工作權與生存權之研究 - 政大學術集成

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(1)National Chengchi University College of International Affairs International Master’s Program in International Studies. 政治大學國際研究英語碩士學位學程. Thabo Matsau 102862011 Master’s Thesis: 政治大 The Social and Economic impacts of hosting the FIFA World Cup in the Developing world: A 立 Case Study of the Poor, the Excluded and the. ‧ 國. 學. Disenfranchised in South Africa 2010... ‧. 在發展中國家舉辦世界盃足球賽對於經濟和社會之影響: 針對 2010 南非世足賽排擠窮人工作權與生存權之研究. n. er. io. al. sit. y. Nat. Advisor: Professor David Blundell Committee: Professor David Lorenzo. i n U. v. Professor Chang Kuo-Hui (National Taiwan University). Ch. engchi. Submitted in partial fulfillment of the requirements for the degree of Master of International Studies in the Graduate College of National Chengchi University (NCCU) JULY 2015. 1.

(2) Abstract. Gone are the days when the hosting of lavish mega-events is exclusive to the wealthiest and most developed nations. Gone too are the days when sporting mega-events were purely sporting spectacles. With tournaments and events generating billions of dollars, developing nations in the global south have, with increasing enthusiasm, bid to host such events. But how does a mega-event actually affect a community, a city, a society? What happens when that community is particularly impoverished and in an under-resourced developing nation? At times, the social security inferiority of developing nations produces results starkly different results to. 政治大 exacerbated in the developing world, often with dire consequences. This dissertation seeks to 立 those of the developed world and in other situations the challenges are universal but are. understand how, on social and economic levels, the hosting of sporting mega-events manifests. ‧ 國. 學. itself to particular groups in society, in particular kinds of nations. This is done with the hope that developing nations bidding and hosting in the future may better appreciate the reality and. ‧. therefore not only set more realistic expectations but also better prepare to guard against and. n. al. er. io. sit. y. Nat. remedy the inevitable consequences on some sectors of the population.. Ch. engchi. i n U. v. 2.

(3) Table of Contents Chapter 1: Outline, Foundations & Theory 1.1 Introduction & Background………………………………………………………….4 1.2 Research Question……………………………………………………………………….6 1.3 Methodology……………………………………………………………………………….8 1.4 Literature Review…………………………………………………………………………11 1.5 Expected Findings………………………………………………………………………..32. 政治大 2.1 Informal Economy: Marketeers & Street Vendors……………………. 37 立 2.2 Evictions & Displaced Peoples…………………………………………………….42 Chapter 2: Analytical Research, Analysis & Findings. ‧ 國. 學. 2.3 Socio-Economics…………………………………………………………………………43. ‧. 2.4 Case Studies……………………………………………………………………………….49 2.4a:Johannesburg…………………………………………………………………………...50 2.4b:Durban……………………………………………………………………………………..60 2.4c:Cape Town…………………………………………………………………………….....66. sit. y. Nat. io. er. 2.5 Human Rights and Constitutionality…………………………………………...73. Chapter 3: Lessons Learnt & the Future for M-Es, Policy Makers & Impoverished groups. n. al. Ch. i n U. v. 3.1 Pros & Strengths..……………………………………………………………….………77. engchi. 3.2 Cons & Weaknesses..…………………………………………………………..………82 3.3 Resistance…………………………………………………………………………..………86 3.4 Where to From Here? For Organizers & Policy-Makers……….………89 3.5 Conclusion & Afterword……………………………………………………….……..92 - Table of Acronyms……………………………………………………………………………95 -References and Bibliography ……………………………………………………………96. 3.

(4) Chapter1: Outline, Foundation & Theory 1.1 Introduction and Background Mega sporting events such as the FIFA World Cup and the Olympics have traditionally been hosted in richer, developed nations in Europe or the Americas but the last decade or two has seen an increasing number of events being hosted in developing nations that would usually not get a looking into. Advocates and supporters of developing nations hosting such events usually. 政治大 such an event. Despite this, there 立is always a significant faction of people, including organized. cite social upliftment and economic development as the benefits of and justification for hosting. ‧ 國. 學. interest groups and common citizens that strongly oppose the events being hosted in their nations. Most of this discontent is based upon the belief that tax payers money could be far. ‧. better be spent in different sectors and initiatives within the society and the economy. This is. Nat. sit. y. an accompaniment to the claim that economic development and prosperity from the event. al. n. body (FIFA, IOC etc.).. er. io. benefit very few people and/or companies, most of which are closely associated with the host. Ch. engchi. i n U. v. During the 2010 tournament many South African businesses and companies, big and small, that thought they stood to benefit were pushed out the market and could not operate within the World Cup bounds because FIFA sponsors and affiliates essentially monopolize the games. Even poor street venders and hawkers, who are a mainstay in the South African economy and rely upon business generated by events, were not allowed to operate during that month. Another concern in the time since the world cup is that the stadia that has been built at a cost of about US$1.5b, money that could have been spent on infrastructure to improve the living conditions 4.

(5) of ordinary South Africans, are for the most part, gathering dust and draining tax payer monies in operating and maintenance costs- a classic white elephant scenario. My papers focus and research question is therefore built around the notion of common South Africans and how much the WC benefitted them. This is with reference to things like number of (sustainable) jobs lost or created and the growth of the economy that can be attributed to the WC. With South Africa being the first nation of its kind to host the football world cup and one of the very first developing nations to host a mega-sized world event of this magnitude makes my. 政治大. research topic very original. Of course I am not the first person to ask questions of this nature. 立. but the field of research (Mega-Events in developing countries) as a whole is very new as the. ‧ 國. 學. phenomena of hosting these events in the developing world is relatively new. I think this topic. ‧. and research question is relevant and important as the developing world is increasingly. y. Nat. enthusiastic about hosting such events with belief that it will bring the country prosperity in. er. io. sit. many shapes and forms. It is now finally time to assess if that claim is true. Research like this will also help organizing bodies like the Fédération Internationale de Football Association (FIFA). al. n. iv n C and the International Olympic Committee make better and more sustainable choices and h e(IOC) ngchi U. regulations in the future. Another possibility is the exposure of these governing bodies and their affiliates as money-hungry capitalists who had very little intention of investing much capital in the countries that host such world events.. 5.

(6) 1.2 Research Question Thesis title and topic:” The Social and Economic impacts of hosting the FIFA World Cup in the Developing world: A Case Study of the Poor, the Excluded and the Disenfranchised in South Africa 2010” As the bidding and hosting of most mega-events, regardless of a country’s relative wealth, development or economic standing, raises the same or, at least, very similar eyebrows and. 政治大 golden thread of reason and logic to explain the phenomena. If indeed there is, then what can 立. questions across the board, I feel it is important to question and attempt to identify if there is a. ‧ 國. 學. be done in the future by host cities and organizations in an attempt to alleviate marginalization and not to leave the proverbial bitter taste in the mouths of host citizens and communities? To. ‧. this end my broad, fundamental research questions is ‘Does FIFA and the World Cup exploit. sit. y. Nat. host nations economically whilst exacerbating their social inequalities and hardships for the. n. al. er. io. poor?’ I would also be interested to investigate and determine just what the social and. v. economic consequences are on these marginalized and excluded groups. Essentially, my. Ch. engchi. i n U. research will be asking questions that ascertain just how much South African tax payers sacrificed, financially & otherwise, and what they received in return. In the most simplest terms, this paper will reveal who were the real big winners and big losers of this event, and to determine if the event served the purpose of social upliftment that so many expected of it or if it simply served to enrich the rich and protect private/corporate interests. Given South Africa’s history, issues of race, class and demography are inextricably tied to this paper. With above topic and research questions in mind I have identified dual Dependent 6.

(7) variables, which could essentially be explained and defined as one, owing to the fact that the notions, namely; evictions and exclusions, are inextricably tied. However, for the sake of clarity and simplification I will point them out as two distinct variables. The first dependent variable is therefore ‘informal trader/sector exclusion from economic benefits of FIFA World Cup 2010’ (street trader exclusion) and the second is ‘the eviction and forced removal of residents of low income or informal settlements’ (Evictions/removals). With regards to independent variables, I have identified ‘FIFA & their corporate associates financial interests’ as one and ‘gentrification & urban beautification’ as another.. 立. 政治大. This research topic is of importance and interest for a number of reasons. Firstly, there is an. ‧ 國. 學. increasing trend of developing nations and emerging economies bidding to host mega-events. ‧. and we can only assume that more and more of them will be awarded such rights. It is however,. y. Nat. imperative for these nations (and the sporting bodies) to fully appreciate that the socio-. er. io. sit. economic dynamics of developing nations are, most often, not at all similar to those of developed nations, and so the commitments, costs and consequences for developing nations. al. n. iv n C will be vastly different. Developing nations have larger proportions of their population h eusually ngchi U in precarious socio-economic situations, thus making those groups more vulnerable and. susceptible market forces like a mega-event. As a focus groups, the ‘evicted & removed’ as well as the ‘economically excluded members of the informal economy’ are of interest and importance because they are likely to be far more numerous in a developing nation as opposed to a developed one, whilst the state resources and welfare systems that can support these kinds of groups in a developed nations are usually lacking or weak in the developing world, hence sporting bodies wishing to host in these regions need to assess their strategies and 7.

(8) developments through a lens that they have perhaps never had to before. FIFA, on the other hand, is of interest and importance because in the realm of contemporary international relations and socio-economics, FIFA represents the growing trend of extremely powerful and influential NGOs on the global level. This delicate balance of power is of keen interest to social scientists and IR scholars, and only becomes more interesting when nations subordinate themselves to international organizations by resting hopes for development and economic growth on the shoulders of these bodies and their mega-events. This study is important. 政治大. because if it were found that the relationship between international sporting bodies, their. 立. mega-events and developing nations is particularly exploitative and exclusionary then we must. ‧ 國. ‧. 1.3 Methodology. 學. prepare for and remedy this in the future.. sit. y. Nat. This will fundamentally be a qualitative research paper that uses primary data sources such as. n. al. papers & journals, and media & news reports.. Ch. engchi. er. io. government, LOC and/or FIFA reports and statistics, as well as secondary data such as academic. i n U. v. In the modern era, the 2010 edition of the FIFA World Cup hosted by South Africa was the first World Cup to be hosted in the developing world and certainly the first in Africa. With that in mind there are no prior events with which to make a case study or comparisons. As a result, I will compare to all or any prior World Cups if and when a comparison is necessary or relevant. This could be done to highlight the difference in consequence or problem when hosting in the developing world as opposed to the developed world, or a comparison could be made to show a pattern of problems and issues that repeat themselves throughout World Cups or mega8.

(9) events, regardless of location. In similar fashion, owing to its equal status as a sporting megaevent, I shall also compare or refer to scenarios surrounding past Olympic events, particularly Beijing 2008, as China could be described as developing. However, with that said, this study and this paper is essentially a case study unto itself and it presents many nuances and particularities that are unique to South Africa such as the youthfulness of our democracy, our unique and complex economy and our racially divided past that still determines social inequalities today. Hence, the primary focus and case study will be South Africa itself and I will refer to local case. 政治大. studies or scenarios to support or disprove certain theories or beliefs.. 立. The above independent variables very much inform and are part and parcel of my own theories. ‧ 國. 學. and hypothesis as shall be explained going forward. With regards to the notion/variable of. ‧. informal trader exclusions, I am referring to the banning and removal of street traders and. y. Nat. vendors from stadiums and their surroundings which are declared as ‘Exclusion Zones’, as well. er. io. sit. as the harassment and hindering of informal economy activities in general (eThekwini Municipality, 2010:8). Bear in mind that these vendors are most often in the informal sector. al. n. iv n C because of an inability to contribute in the and they have established their ‘businesses’ h eformal, ngchi U. in chosen areas because of the foot traffic and relative proximity to clientele and resources they may need to sustain their business. These businesses are traditionally tiny, one-man operations that generate little profit but are essential in supporting families and livelihoods. Proximity to stadia, entertainment areas, trade zones and transport hubs is central to the survival of these informal businesses and subsequently the families supported by them. It is with the above in mind that I ponder just why FIFA, the South African government or the Local Organizing Committee (LOC) would be so adamant on their removal and exclusion. To this end, the first 9.

(10) justification I can think of runs along the lines of neoliberal capitalism where financial interests are vehemently guarded and monopolies are established in the interest of competition eradication (Mabugu & Mohamed, 2008). With that said, my theoretical and methodological approach to this paper will be ‘neoliberalism’. Neoliberalism is an ideology that involves a commitment to the rolling back of the Keynesian welfare state’s collectivist institutions and the ethos of universal provision to the rolling out of market mechanisms and competitiveness to achieve economic growth (Peck and Ticknell 2002; McGuirk 2005). If, by definition,. 政治大. neoliberalism is the use of policies like deregulation, privatization, tax-cuts and globalization to. 立. promote rationale self-interest then, by definition, the FIFA World Cup is monumentally. ‧ 國. 學. neoliberal. Neoliberal policies are known to encourage economic growth and capital accumulation but due to the laissez-faire approach, benefits, growth and capital flows are never. ‧. equally spread and are almost always achieved at the expense and peril of an exploited or. y. Nat. al. er. io. perpetuates neoliberal disparities within a society.. sit. excluded group. This dissertation will therefore assess if the World Cup and other mega-events. n. iv n C My hypothesis and theory with regardshto evictions and forced e n g c h i U removals of residents is that in. an attempt to look as attractive to tourists and international media the country must present. itself in its cleanest, most developed fashion imaginable. Unfortunately, in a country like South Africa where the gap between the haves and the have-nots is alarmingly wide and clear and yet they often live within a relatively close proximity to each other, particularly in the cities, the result of this is to deny and hide the existence of sub-par housing and slums. In cases where said informal settlements are thought to be too much of an eye-sore for tourist and investors. 10.

(11) then they are simply raised to the ground and their inhabitants are ‘asked’ to move elsewhere, usually temporary informal settlements with worse facilities etc. than their last homes The paper will begin with the approach of a critical analysis in the sense that it will identify and assess how, economically and socially, the World Cup manifested itself in South Africa and what this meant for the population and the economy. To this end my empirical research will seek to find statistics and information on issues such as employment and job creation, forced evictions, small business and entrepreneurship rates and just who was excluded and how. This paper will. 政治大. be a distinct and unique contribution to academia in the sense that where other authors and. 立. researches have explored the socio-economics of World Cup hosting, whether that be in South. ‧ 國. 學. Africa or elsewhere, this paper will be primarily focused on the informal economy (street. ‧. traders and vendors in particular) as well as the housing rights of evicted and removed people.. y. Nat. Furthermore, I shall be comparing and contrasting these focus groups with the unique and yet. er. io. sit. unexplored socio-dynamics of the developing world so that developing nations and their emerging economies are better prepared than South Africa was. n. al. 1.4 Literature Review. Ch. engchi. i n U. v. Let us begin with a few definitions and clarifications to avoid confusion. Within the realm of world events and spectacles there is a small niche termed ‘mega-events’. These are termed so because of their sheer size and ability to captivate audiences and thus generate massive capital flows. In the field of sports there are no events more mega than FIFA’s football World Cup or the Summer Olympics, in fact, the term mega-event is seldom used in sport beyond one of these two quadrennial events. So grand a spectacle are these events that a rigorous (and 11.

(12) expensive) bidding process takes place up to a decade before the actual event and the host is awarded the rights 6, 7 or even 8 years before the event to ensure immaculate planning and infrastructure (Van Kampen, 2008). To highlight this, one need look no further than Qatar which was awarded the hosting rights to the 2022 tournament back in 2010 thus giving them 12years to invest and plan for the event. When it comes to a nation’s hosting of a sporting mega-event like the FIFA World Cup, people’s opinions usually fall into one of two categories, and there is seldom any ambivalence.. 政治大. Observers and commentators either fully support & advocate for the tournaments hosting or. 立. they starkly oppose it. The literature around such tournaments reflects a similar pattern. ‧ 國. 學. inasmuch as most authors appear to have a premeditated agenda and thus present their. ‧. opinions and findings in a manner that clearly opposes or defends the event without much. y. Nat. appreciation for the flip-side of the coin. My hope with this literature review, and dissertation. er. io. sit. in its entirety, is to present both sides of the argument and thus identify ways in which future events can be better organized for a more equal distribution of benefits and minimizing the. al. n. iv n C reasons to oppose the event in the firsth place. When such aU e n g c h i tournament is hosted in a. developing nation such as South Africa, tensions between advocates and detractors can be even more heated with socio-economic ramifications being keenly debated. On one side of the debate there are those that predict and foresee positive economic and social spin-offs such as job creation, foreign investment, infrastructure development & upgrades, increased tourism and more intangible factors such as national pride and positive marketing for the country as a foreign investment potential. The above views are held by authors and scholars such as Preuss (2000), Darkey and Horn (2009) and Jory and Boojihawon (2011), amongst many others. On the 12.

(13) other side of the house are detractors of such states hosting an event of this magnitude due to the socio-economic investments and sacrifices it entails and the belief that they serve a minority but burden the majority. These authors include Lenskyj (2000, 2008), Cornelissen (2004, 2012) and Tayob (2012) Using these two broad schools of thought, the following literature review will present the socioeconomic pros, cons and challenges of hosting a mega-event in the developing world as backed by these and other authors. As the title of my research suggests, this will primarily be a South. 政治大. African case study with the chief focus on the FIFA World Cup staged in 2010. This paper will be. 立. discussed in two separate yet inextricably tied subsections, namely; the social and the. ‧ 國. 學. economic. For the sake of clarity the literature will be presented under several sub-headings or. ‧. notions that appear recurring, and arguments on both sides of the house will be put forward. y. Nat. using grouped authors and arguments, with notions of (economic & social) development and. er. io. sit. consequences for the poor being the golden thread .It is of interest to note a pattern of gradual growth in discontent and opposition in the time leading up to the tournament. This, according. al. n. iv n C to Cornelissen (2012) and Tayob (2012),his partly attributable e n g c h i Uto a shift from a positive to. negative sentiment within the population, particularly the poor and disenfranchised once they realize that beyond the entertainment spectacle of the event they actually stand to gain nothing economically. Many even stand to lose as the tournaments policies and structure essentially work to serve the interests of a few privileged firms, companies and individuals whilst the marketing rhetoric surrounding the world cup is far more inclusive and suggests potential for equal distribution of benefits and profits.. 13.

(14) Let me start in the time leading up to the World Cup by looking at the expectations and preparations of the South African public as well as the political elite & Local Organizing Committee (LOC) that are tasked with delivering the World Cup to FIFA’s exact and stringent specifications. First and foremost, it is imperative to note that although the World Cup essentially belongs to FIFA, it is primarily funded by the host nation inasmuch as they are financially and logistically responsible for ensuring that all infrastructure around the tournament meet FIFA’s world class standards and all systems and market forces are geared to. 政治大. maximize profits for FIFA and her commercial partners. FIFA’s corporate affiliates and sponsors,. 立. for example, paid a combined total of US$3.2bn to be World Cup affiliates, in return FIFA and. ‧ 國. 學. the LOC do everything in their power to protect affiliates from their competitors. This protection includes a monopoly on what may or may not be advertised and marketed in. ‧. football spaces and what products may be sold in stadiums and their surroundings (Venter et al,. y. Nat. sit. 2012; Tayob, 2012). Take South African Breweries as an example. South Africa was home to the. n. al. er. io. world’s largest Brewery at the time, SAB-Miller, which produces a host of internationally. i n U. v. acclaimed but locally brewed South African beers and alcohols. However, FIFA’s liquor associate. Ch. engchi. is Budweiser and so not only did SAB (i.e. South African economy) miss out on that slice of the World Cup pie (neutral: no gains-no loss), SAB loses (negative consequence) income as their products could not be sold in many areas where they had traditionally operated such as stadiums, fan parks, taverns and any other establishment within FIFA demarcated areas. Similarly, McDonald’s is the food and snacks affiliate and Adidas the kit sponsor. As a result the traditional South African football scene of vendors, hawkers and street traders with an array of cuisine or countless football jerseys or kits was conspicuous by its absence during the World 14.

(15) Cup month. So conniving is FIFA’s business model that Humphreys (2010:1) describes the hosting of the World Cup a “rent extraction scheme” whereby host nation tax payers money is used to fund and host a lavish affair, the profits and benefits of which are thinly spread. Even more frightening is that despite selling just broadcasting rights at a price exceeding US$2bn and made a revenue of well over R25bn/US$3.2, FIFA still officially operates as a tax-exempt, nonprofit organization. So essentially, in simple English, the government pledges to build all infrastructures and ready all facilities to a very high standard, at a very high cost. They then. 政治大. invite FIFA to come host a party and use all those facilities at no cost, they allow them to invite. 立. their affiliates and conduct business of all sorts, whilst unapologetically denying anybody that is. ‧ 國. 學. not an affiliate from conducting business or benefiting off the World Cup hype. Then, lastly, they allow FIFA and her affiliates to leave without paying tax on the monies they have made. ‧. and without acknowledgment or compensation for the billions of dollars South African’s could. y. Nat. sit. have made or their billions wasted making the event happen (Wonacott, 2010; Celik, 2011; Kolo,. n. al. er. io. 2011, Tayob, 2012). One does not need to be an economist to see the lose-lose-lose. i n U. v. complexion of this equation. So contentious is FIFA’s relationship to the host that some have. Ch. engchi. said that it undermines a countries sovereignty as is evidenced by Brazil’s need to amend their national drinking laws, whilst others say that FIFA and the World Cup infringes upon the rights of the poor when local institutions and systems are modified and adapted purely for the purpose of delivering the event without much thought for the consequences on the poor or the population at large (Lenskyj, 2008; Cornelissen, 2012) Being essentially a public funded affair it is no surprise political elites and government were fully behind the bid and they made an effort to mobilize support. There was a need to justify 15.

(16) such extensive public investment and expenditure on what is essentially a leisure activity, especially when more than half the population lives below the poverty line and the South African GDP per capita is below US$10.000 per year (Humphreys, 2012; Tayob, 2012). To this end, those responsible for the bid identified the need to ensure that the World Cup be perceived as mutually beneficial and encompassing, thus serving as a catalyst for improving the physical environments and social wellbeing of the population, particularly those that were previously disadvantaged and disenfranchised (Pillay and Bass, 2008; Jory and Boojihawon,. 政治大. 2011; Celik, 2011). A general consensus on what South Africans wanted and expected out of. 立. the tournament includes tangible economic and material gains, intangible feelings of nation. ‧ 國. 學. building and pride as well as to take steps towards overcoming international obscurity and marginalization. Political elites including then president and vice president, Thabo Mbeki and. ‧. Phumzile Mlambo-Ngcuka as well as the current president and his then deputy Jacob Zuma and. y. Nat. sit. Kgalema Motlanthe all lent credence to the notions of prosperity emanating from the hosting. n. al. er. io. of the tournament. When the hosting rights were awarded in 2004 some of the key legacy. i n U. v. areas recognized by Motlanthe included peace and nation building, regional football. Ch. engchi. development, tourism and environment, continental security and improved ICT and communications systems. (Nkemngu, 2012) Zuma went even further by forecasting socioeconomic spin-offs for the entire SADC region in terms of job creation, poverty reduction, social upliftment and the quelling of stereotypes, misconceptions and afro-pessimism in general (Desai and Vahed, 2010) whilst Mbeki predicted continental ramifications with effects being felt as far as Cairo, essentially inspiring an African renaissance of sorts (Kolo, 2011). In an increasingly globalized and interconnected world mega events are seen as economic and soft 16.

(17) tools to mobilize international attention and attracting international business and capital investments. The basic idea is that public funds are invested to encourage economic activity and opportunity which reciprocates as entrepreneurial and employment opportunities, thus setting a foundation for a healthier economy and improved standard of living through regeneration, gentrification, skills and infrastructure development and economic growth (Preuss, 2000; Darkey and Horn, 2009; Jory and Boojihawon, 2011; Venter et al, 2011; Kolo, 2011). South Africa’s racist history is inextricable from any conversation on development or. 政治大. international perception of South Africa. The idea was therefore to use the World Cup as part of. 立. the country’s strategy to development and a better international image and status. Looking. ‧ 國. 學. back on the Rugby World Cup in 1995 or the African Cup of Nations in 1996, both hosted by South Africa, we are reminded of the healing and unifying power sport has and the positive. ‧. effects it has already had for South Africa (Jory and Boojihawon, 2011; Cornelissen, 2012). y. Nat. er. io. sit. Despite the positivity in rhetoric, Jory and Boojihawon, (2011) and Tayob (2012) agree that the realities and real experience often did not match the predictions or ambitions put forward. al. n. iv n C beforehand. This is not unique to the South case as it appears to be common in the h eAfrican ngchi U bidding and hosting of mega events. The South African government and the LOC employed Grant Thornton, a leading firm in the field of consultancy, auditing and business advice to crunch the numbers and make predictions and estimations against a host of financial and social indicators. Over the preparation years and through the World Cup we see a general pattern of rather inconvenient gross under or over estimates by the firm with regards to budget requirements, expected returns and the outcomes of certain actions or activities. The inconvenience I am referring to here is the fact that many aspects of the bid and hosting 17.

(18) process were undertaken precisely because of the forecasts made by firms like Grant Thornton, and so when it is discovered that hosting the tournament costs exponentially more than we had budgeted for or that far fewer tourists arrived than we had estimated then questions of whether it is worth it or if, had we known beforehand, would we have still bid to host then become more pertinent. This is particularly concerning for developing nations as resources and budgets are comparatively less, hence the consequences of bad economic decisions are more detrimental, especially for the poor. Worryingly, when comparing figures between Grant. 政治大. Thornton and other LOC/FIFA affiliated agencies to independent auditors and consultants the. 立. numbers are vastly different at times, begging the question of whether these firms generate. ‧ 國. 學. data and rhetoric that serves and protects the interests of FIFA and the SA government/LOC whilst convincing us, the public, that it is a good idea to bid for and host an event (Jory and. ‧. Boojihawon, 2011; Tayob, 2012). Figures and facts around these exaggerations and false. y. Nat. sit. predictions/estimations will be presented throughout the paper when relevant but it is fair to. n. al. er. io. say that they contribute to the sentiment that the World Cup has a strong impact on poverty. i n U. v. reduction when, in fact, Pillay and Bass (2008), Kolo (2012) and Venter et al (2012) all contend. Ch. engchi. that there is no evidence from previous World Cups or mega-events that this is the case.. According to Deloitte’s Lwazi Bam South Africa is both a developed and a developing nation, with a solid economic and technological foundation, but without the necessary infrastructure to support the potential. The world cup was seen as the bridge between these two notions. The World Cup was bid for precisely because it was believed that it would help advance the. 18.

(19) economy and develop infrastructure at a rate far quicker than any other political or economic activity. By incorporating the World Cup into South Africa’s long term development models the event would even help SA meet her Millennium Development Goals (MDG), whilst inclusion of SA into the BRIC(S) states highlights the events ability to attract and inspire confidence. According to many supporters of the tournament that positive image projection, marketing and inspiration of confidence in the country is all part and parcel of why we bid for events in the first place (Pillay and Bass, 2008; Jory and Boojihawon, 2011; Kolo, 2011; Nkemngu, 2012). On. 政治大. the other hand there is literature that argues that mega events have no significant, direct. 立. impact on development or economic activity or, at least, there is very little indisputable. ‧ 國. 學. evidence to support these claims (Black & van der Westhuizen, 2004; Horne & Manzenreiter, 2006; Humphreys & Prokopowics, 2007). In similar light, others argue that the fundamental. ‧. issues with using the World Cup as a development tool is that any benefits which are likely to. y. Nat. sit. come from the event will not be widespread or equally distributed and that, in many respects,. n. al. er. io. the benefits will only be felt for the duration of the tournament or a relatively short term, in an. i n U. v. unsustainable manner. This again raises the question of public funds for private/commercial. Ch. engchi. gains (Matheson and Baade, 2004; Celik, 2011). All the while, Ritchie (2000), Lee & Taylor (2006) and Pillay & Bass (2012) argue that the economic impacts are intangible, variable and ambiguous. A common argument against the tournament is that the vast funds invested in delivering the tournament could be far better spent elsewhere and that the World Cup represents a misdirection of public funds and misplaced priority on the part of our leaders. Desai & Vahed (2010) support this by pointing out that the amount of money invested in the. 19.

(20) World Cup is equivalent to the amount of money the government spent on housing the homeless between 2000 and 2010. Let us now consider the financial numbers and pure economics of the tournament. According to a senior economist at KPMG, Frank Blackmore in Jory and Boojihawon (2011), the World Cup and related activities injected an estimated ZAR93b into the economy whilst Tayob (2012) notes that LOC president, Danny Jordaan, estimated foreign expenditure gains of ZAR30bn when independent firms estimated a figure closer to ZAR13bn. South Africa pledged ZAR400bn. 政治大. between 2006 and 2010 just on infrastructure development across the board (not only World. 立. Cup) within the national budgets (Desai & Vahed, 2010) whilst post event figures show direct. ‧ 國. 學. infrastructure expenditure in the World Cup to have been between ZAR30bn and ZAR33bn. ‧. (Tayob, 2012). On one hand, the government and LOC forecast and estimated a growth of 0.5%. y. Nat. to the GDP but final figures show a growth rate of 1% after the World Cup, leading Minister. er. io. sit. Gordhan and other commentators to label the tournament an economic success (Jory and Boojihawon, 2011). In fitting in with the theme of overestimations and exaggerated claims by. al. n. iv n C advocates of the event, Tayob (2012) notes a 2005 estimate made by Grant Thornton and h ethat ngchi U. presented by Danny Jordaan forecast a total direct infrastructure expenditure of ZAR3.154bn and by 2010 post-event figures show the cost of Cape Town’s stadium alone to be ZAR4.5b again questioning the reliability of firms closely associated with FIFA or the LOC. Some argue that, false predictions aside, the expenditure was not sustainable or considerate of the longterm because most of that infrastructure was geared directly towards the World Cup as opposed to the needs and wants of the general population, particularly the poor and. disenfranchised. An example of this is the expenditure on the Gautrain, South Africa’s version 20.

(21) of an urban hi-speed metro-rail network which accounts for a majority of the ZAR13b spent on transport infrastructure leading to the games. The argument here is that the price and classing of a ticket makes it inaccessible to a majority of South Africa’s poor population, even the routes and areas it currently operates in make it geared towards a very specific demographic of the population which clearly does not represent the population mean. According to Jory and Boojihawon (2011), South Africa’s annual revenue is US$75b whilst the expenditure is US$100b leaving a 25% deficit. Funding the World Cup adds even more pressure to the countries fiscal. 政治大. reserves, meaning that funds initially earmarked for the betterment of the poor and other. 立. functions of government are redirected. This redirection of funds inevitably results in the. ‧ 國. 學. inferior delivery in basic services whilst the net benefits and profits of the event are unlikely to be felt by those most likely to suffer the negative consequences such as poor service delivery. ‧. (Bohlmann & Van Heerden, 2008; Desai and Vahed, 2010; Jory and Boojihawon, 2011). This. y. Nat. sit. notion ties in neatly with the arguments of misplaced priorities and funds on the part of the. n. al. er. io. government as well as the notion of public/tax funds being used for private profit or the benefit of a select few, as offered in the previous paragraph.. Ch. engchi. i n U. v. With regards to ‘development’ I have identified ‘infrastructure’, ‘tourism’ and ‘employment’ (linked to poverty reduction) as recurring themes throughout the literature. The catalyst component of the world cup is captured by the infrastructure drive it sparked with the public sector infrastructure program which committed ZAR846bn over 3 years, ZAR261bn of that coming in 2010. Erasmus (2010) notes that this infrastructure drive created no less than 415000. 21.

(22) jobs and markedly improved roads, airports, stadiums, hotels and communications networks. Of course, of interest to us now is to note how many of those jobs were sustainable or long term/beyond the tournament itself as this contributes to social upliftment. Infrastructure is prominent because of all the upgrades and new additions that preparations for the event were expected to usher in, thus creating jobs and boosting the economy. In fact, infrastructure is so closely linked to mega-events and the 2010 World Cup in particular that president Mbeki once identified the event as the vehicle that will deliver modernity to South Africa (Cornelissen,. 政治大. 2012). Total direct expenditure on infrastructure for the games was around the. 立. ZAR33bn/US$4.3bn mark, ZAR11.7bn/US$1.5bn of which went towards stadiums,. ‧ 國. 學. ZAR13bn/US$1.7bn going towards transport infrastructure and ZAR1.5b going towards broadband and communication, creating anywhere between 13000 and 20 000 jobs in the. ‧. construction and hospitality (Humphreys, 2010; Kolo, 2011). Infrastructure surrounding security,. y. Nat. sit. policing and justice were also given an overhaul including the long-term training and. n. al. er. io. employment of 40 000 police officers, thus highlighting one of the few indisputably sustainable. i n U. v. benefits that serves to benefit all citizens of the country (Jory and Boojihawon, 2011).. Ch. engchi. Despite the positives presented above, infrastructure is still one of the most contentious and controversial subjects when bidding and hosting a mega-event. The ideas of sustainability and cost-benefit ratios are of vital importance in any mega-event but issues are further exacerbated when dealing with a developing or emerging economy/society. 3 prominent issues around infrastructure include the already mentioned misplacement and misdirection of public funds and energy, the use and benefits of the infrastructure being below expectations whilst the costs to construct are always above expectations and lastly, the notion of white elephants i.e. lavish 22.

(23) assets whose maintenance costs are more than they bring in whilst they serve very little practical use to local society and cannot be very easily rid of (Matheson & Baade, 2004; Horne & Manzenreiter, 2006; Pillay & Bass 2008, Celik, 2012). An example of FIFA’s and the LOC’s lack of sustainable foresight or concern for total tax payer dollars spent can be seen by observing the histories of both the Cape Town Stadium and the Moses Mabhida stadium in Durban. With regards to the former, most of the football in Cape Town takes place in peripheral, non-white communities and townships. Traditionally, Athlone Stadium has always been regarded as the. 政治大. home and stadium of Cape Town’s football. It was proposed that this stadium be upgraded and. 立. host games for the World Cup but this idea was vetoed and the reasons offered were that. ‧ 國. 學. poverty and economic eye-sores to be found in the township are not what tourists want to see (Tayob, 2012) This is a two-pronged issue in the sense that firstly FIFA and the LOC missed a. ‧. golden opportunity to bring the World Cup to the poor, disenfranchised local communities,. y. Nat. sit. which they had promised to do in the bid. Secondly, instead of committing more funds or taking. n. al. er. io. steps towards for the development of the Athlone area to better the lives of its inhabitants and. i n U. v. remove the eye-sores FIFA was concerned about, the decision was taken to rather just sweep. Ch. engchi. poverty under the carpet and try our hardest to keep it hidden from tourists and foreigners. Furthermore, Cape Town has for many decades had a world class stadium in the middle class, white suburb of Newlands where Rugby is the preferred pass-time. In a decision that would have saved billions, FIFA opted against upgrading Newlands Stadium and chose to rather construct a stadium by the picturesque Green Point sea side, an upper-class white suburb with virtually no history of football simply because this part of town was deemed more aesthetically pleasing for tourists, with no consideration for post-tournament use or the development of a 23.

(24) suffering community that really need investment. Similarly, in Durban, Kingspark stadium in white suburbia is a world famous institution that has always hosted Rugby events whilst Chatsworth Stadium, where football is largely hosted, is located in a run-down peripheral zone. FIFA again chose not to upgrade either of the 2 already existing stadiums but took the daftest and most expensive decision to construct a brand new stadium literally across the road from the already well equipped Kingspark Rugby Stadium (Tayob, 2012). This directly opposes South Africa’s development agenda with regards to MDG’s and claims. 政治大. made during the World Cup bid which stated the commitment to constructing facilities in. 立. disadvantaged areas and the periphery. The above is given even more pertinence when it is. ‧ 國. 學. revealed that outside of football matches involving South Africa’s two biggest clubs then the. ‧. average turn-out to local football matches is less than 5000 which is well below the 60-70-90. y. Nat. 000 capacity in stadiums constructed throughout the country, many of which are in areas with. er. io. sit. no local team or history of football culture (Kolo, 2011; Tayob, 2012). One can argue that beyond football, stadiums and facilities can generate income through events and corporate. al. n. iv n C functions etc. such as is done with Japan’s post-2002 but even this is essentially h estadiums ngchi U. private use and private profits from the initial public expenditure, a point which has been raised several times already (Whitson & Horne, 2006; Pillay and Bass, 2008). Cornelissen (2004) wrote that South Africa needed to be particularly conscience of the long-term impacts, uses and consequences of the World Cup infrastructure drive if we want to alleviate the negative impacts and wastefulness which plagues most mega-events. Based on examples such as the Gautrain expenditure, building of facilities like King Shaka airport and decisions around stadium construction, it appears that the infrastructure drive was not particularly sustainable or 24.

(25) considerate of benefits to the poor, especially when we cast our minds back to Desai & Vahed’s (2010) claim that expenditure on stadiums could have built 90 000 houses a year for the homeless in the four years leading to the World Cup. One cannot but wonder why decisions that seem far more costly and irresponsible were of taken, to this end we must take neoliberal cognizance and assessment of who the real beneficiaries of the infrastructure drive were. Kolo labeled the infrastructure drive as “borrowed prosperity” (Kolo, 2011:25) so let us consider just where that prosperity is borrowed from and by whom. As argued by Tayob (2012), the. 政治大. infrastructure drive funded by the tax paying society was actually very profitable for a select. 立. few firms and individuals. Indeed the drive created thousands of jobs in construction etc. but a. ‧ 國. 學. vast majority of these are unskilled, low paying and short-term, essentially making little difference to poverty or employment rates over time. The real benefit goes to the construction. ‧. firms, most of which were outsourced 1st world firms meaning tax payer funds moving offshore. y. Nat. sit. instead of boosting the local economy and firms (Celik, 2011; Jory and Boojihawon, 2011). In. n. al. er. io. similar light, Desai & Vahed (2010) argue that locally, only a small elite and firms benefited from. i n U. v. the infrastructure drive and government investments. Sadly, evidence suggests that most. Ch. engchi. World Cup tenders and contacts were awarded to apartheid era companies like Murray & Roberts or Group5 Construction which are examples of power and wealth still concentrated in South Africa’s white minority and their offshore affiliates. In terms of Black Economic Empowerment (BEE) which is a notion inextricably tied to Africa’s first World Cup, it appears that tenders and contracts were awarded to firms belonging to or associated with South Africa’s black elite who are already frightfully wealthy. Even more worrying is that these elites such as Tokyo Sexwale and Bulelani Ngcuka (husband to former Deputy president Phumzile 25.

(26) Mlambo-Ngcuka) are all closely related to the government if not a part of it officially (Desai & Vahed 2010). The above explains why decisions to construct expensive but unnecessary stadiums and infrastructure were taken and how/why very few local companies and firms actually benefitted from the billions available to be earned. Similarly, we begin to appreciate how and why the initial infrastructure estimate was ZAR2.5bn, rising to ZAR8.4bn in 2007 and exceeding ZAR33bn once totaled (Desai & Vahed 2010). Had we been quoted such a hefty bill in the bid stage we may have turned down the opportunity to host, but being given the bill only. 政治大. after eating the proverbial meal can only leave a bitter taste in one’s mouth.. 立. One of the prevailing, central notions of this thesis is the idea of sustainability. With regards to. ‧ 國. 學. tourism, this notion is particularly tricky to define and the World Cup as an event is susceptible. ‧. to both praise and criticisms in this regard. According to a report by the World Commission on. y. Nat. Environment and Development (WCED) sustainable tourism development “meets the needs of. er. io. sit. the present without compromising the ability of future generations to meet their own needs”, whilst the World Trade Organization (WTO) states that sustainable tourism development. al. n. iv n C “requires informed participation of all relevant (Nkemngu, 2012:2). It is the latter h e n stakeholders” gchi U. point that raises eye-brows when considering the bidding and hosting of the World Cup in 2010. According to a study by the Department of Tourism, then Tourism Minister, Marthinus van Schalkwyk was quoted as saying that the “World Cup was worth every cent invested” as more than 309000 tourists poured into the country leaving behind in excess of ZAR3.2bn and more than 95% saying they would return to the country (BuaNews, 2010;1). The same study revealed that the outside world’s awareness of South Africa as a leisure destination increased by 9% as the world cup played a significant role in changing foreign attitudes towards the country. It’s 26.

(27) believed that the June-September tourist rate for 2010 was up about 20% on 2009 whilst hotel occupancy was up 6% and hotel revenue was up 121.7% on figures for the same period in 2009. When considering that every 10 tourists are believed to create one job locally, this seems a worth-while period (Kolo, 2011; Nkemngu, 2012). Conversely, although 309000 total tourists seems positive, it is only a fraction of the 450 000 estimation upon which the bid and investments were made, again highlighting the inaccuracy, significance and purpose of estimations prior to the hosting of an event of this nature (Kolo, 2011; Nkemngu, 2012; Tayob,. 政治大. 2012). 309 000 tourists’ amounts to only 4% of 2010’s total tourist figures, and the estimated. 立. ZAR3.2b they spent is less than 10% of the countries investment which begs the question of. ‧ 國. 學. whether the event is really worth it from the tourist perspective. Furthermore, it is important to understand if and how those tourists engaged with the informal economy as this is the only. Nat. y. ‧. way their presence can really benefit the poor.. er. io. sit. With regards to employment and job creation, Humphreys (2010) reminds us that South Africa is a developing nation with an annual GDP per capita of less than US$10 000 and an. al. n. iv n C unemployment rate of 24% in 2009, leaving the population in poverty. As a result, h ehalf ngchi U. necessity (rather than opportunity) created a large and robust informal economy that supports millions of South Africans. This informal sector is a product of the apartheid era where Africans were offered no opportunities for education or acquiring skills that could be used in the formal economy (Celik, 2011; Venter et al, 2012). In addition to this, apartheid laws prohibited Africans from residing or conducting business in certain areas so, with survival and self-preservation in mind, Africans engaged in hawking, trading, vending and all other manner of informal, entrepreneurial activity. It goes without saying that the jobs and opportunities in this sector are 27.

(28) unskilled and low paying (Matheson and Baade 2004; Horne & Manzenreiter, 2006; Celik, 2011). With this in mind we see why employment and job creation were so high up on the agenda for the 2010 World Cup. To this end president Zuma claimed in 2009 that more than 400 000 jobs had already been created by World Cup associated activities and SA Info (2010) noted that: The number of annual jobs sustained in total is 695 000. Of these, 250 000 annual jobs were sustained in 2010 and 174 000 by the net additional economic activity in this year. This is an economic measure of equivalent annual jobs sustained by this amount of economic activity, and. 立. ‧ 國. 學. (Kolo, 2011). 政治大. not new jobs created. Whilst economist Frank Blackmore states that it is obvious to tell that the world cup was a. ‧. success and he notes the tournaments 1% added GDP growth rate as evidence, opposition to. y. Nat. sit. the tournament are more concerned with where that 1% is located and just who, in terms of. n. al. er. io. class and demographic, actually benefitted from the tournament. The world cup and other. Ch. i n U. v. mega-events are seen as catalysts to and supporters of entrepreneurial activity. The. engchi. significance of this phenomena is made more poignant when one considers that most of South Africa’s informal sector is made up by necessity and survival where most engaged have low levels of qualification and little potential for upward mobility or employability in the formal sector (Wonacott, 2010; Kolo, 2011; Tayob 2012). Although it is hard to accurately calculate, it is estimated that the informal sector makes up 25% of total employment and contributes between 5% and 6% of GDP (Venter et al, 2012). Herrington, Kew J and Kew P (2010) note that although a majority of entrepreneurs did not report an immediate positive impact from the 28.

(29) world cup two-thirds of start-ups less than a year old, 70% of new firms between the ages of 1 & 3 as well as half of all established business believed in the long term benefits for them and the South African economy. Hence the overall start-up increase in 2010 is mostly attributed to the world cup. This positive outlook can be attributed to what Comaroff and Comaroff have termed as ‘millennial capitalism’ which describes the process whereby people, societies or nations selfsacrificially consume and spend beyond their means with the hope that such consumption will. 政治大. bring about prosperity in the future. Mega-events such as the world cup are seen as tools of. 立. millennial capitalism and they involve a sacrifice by all simply to reinforce the interests and. ‧ 國. 學. benefit of a few (Comaroff and Comaroff, 2001). The notion of millennial capitalism is. ‧. inextricably tied to that of globalization whereby nations, particularly peripheral or developing. y. Nat. nations are desperate for international recognition hence they seek catalysts to foreign. er. io. sit. investment and economic injections. Although South Africa’s millennial capitalism expenditure during the world cup is justifiable and reasonable to an extent, the unfortunate reality is that. al. n. iv n C the world cup essentially serves the interests local and international capital entities h e nofglarge chi U (Tayob, 2012). In an attempt to sell this millennial dream and convince the nation and its. masses to consume and spend with the ‘promise’ of future returns, host nations and organizing bodies often massively overshoot estimations with final figures across the board seldom reaching what was first predicted and budgeted for. (Tayob, 2012) This is evidenced by the Grant Thornton estimates pre-2010 and their realities following the event. It is also important to note whose agenda or interests are being supported or pushed by reports such as that by Grant Thornton, a firm employed by government. Furthermore, millennial activities such as the 29.

(30) world cup are often referenced as nation building tools, particularly for nations like South Africa which often have dark pasts. This emotive language and millennial promises convince people to invest, consume and sacrifice with the hope of future prosperity which, for most people, never comes (Tayob 2012). The emotive language of millennial hope and capitalism mask the skewed deal FIFA strikes with the host nation which required the host to provide all infrastructure and running costs in return for a percentage on match tickets and the hope of publicity turning into investment. The notion of millennial consumption and capitalism also ties in neatly with neoliberal strategies of development.. 立. 政治大. Despite job creation and employment being commonly cited justifications for mega-event bids. ‧ 國. 學. and hosting, Celik (2011) notes that there is no evidence to support the claim that mega-events. ‧. create or maintain jobs in the long term or sustainably. Furthermore, COSATU, South Africa’s. y. Nat. biggest trade-Union, claimed that the World Cup was mostly a missed opportunity to create. er. io. sit. jobs and develop skills as most products were mass produced abroad whilst informal street traders and vendors, a trademark of South African football, were mostly excluded from event. al. n. iv n C activities due to FIFA’s stringent by-lawsh(Tayob, 2012). Inextricably tied to the notion of engchi U. employment is that of poverty reduction, another factor advocates for mega-events commonly cite as advantageous. The perceptions of poverty reduction and benefits to the poor are based primarily on the hope of a trickle-down effect with the logic being that money injected and circulating in the economy will inevitably spark economic activity resulting in jobs and other opportunities but, of course, this is a highly inaccurate and presumptuous means of analyses (Hiller, 2000; Pillay and Bass, 2008). Mega-events are often commercial successes but they highlight very little change for the poor. Although there is a perception that events nurture 30.

(31) entrepreneurship and support small business, evidence supports the contrary as mega-events offer few opportunities to non-affiliates (Wonacott, 2010; Jory and Boojihawon, 2011). Owing to the temporary nature of jobs provided one cannot regard the jobs created figures to be sustainable or worth any significant impact on employment or poverty rates, thus highlighting how mega-events are actually poor vehicles for economic development in transitional economies, in direct contrast to statements and views provided by presidents Mbeki, Zuma and others (Baade & Matheson, 2004; Horne & Manzenreiter, 2006; Pillay & Bass, 2008). In addition. 政治大. to this, as has been argued by Kolo (2011), Cornelissen (2012) and Tayob (2012) earlier in this. 立. literature review, mega-events may even exacerbate the effects of poverty as public funds are. ‧ 國. 學. misdirected, leading to poor service delivery and negligence of projects aimed at the poor.. ‧. It was said earlier in this paper that the World Cup has often been accused of by-passing. y. Nat. democratic systems or infringing upon the rights of the poor. One of the most significant ways. er. io. sit. this takes place is through projects of urban renewal and gentrification which, in reality, were simply forced evictions and an attempt by government to hide poverty and remove eye-sores. al. n. iv n C from the aesthetics of the World Cup (Celik This urban beautification process often h e2012). ngchi U. evicted families from cities and urban areas to ‘temporary’ locations in the periphery, displacing many thousands of people. Even more worrying was the lack of concern or acknowledgement that most of the people being forcibly removed are also being separated from their source of income (informal stalls etc.) and the foot traffic they need in the urban centres to attract clientele. Herein lays the notion of the World Cup leaving many homeless, hungry and jobless when it was sold as a bringer of prosperity (Celik, 2012; Cornelissen, 2012; Tayob, 2012). The. 31.

(32) need for urban renewal in South Africa is not debatable, however what is the manner in which it was implemented in 2010 and leading to then. 1.5 Expected Finding Going forward, this thesis will conduct more research into marginalized and excluded communities and peoples within society. To this end there will be a more thorough analysis of particular case studies in South Africa which led to the eviction and forced removal of people. 政治大 depth investigation into who benefitted (corporate & political entities vs. the poor) in 立. under the guise of urban renewal and beautification. Furthermore, there will be a more in. ‧ 國. 學. comparison to who was excluded. With ‘job creation’ and ‘entrepreneurship’ often quoted as positives from mega-events, I will test this claim or theory by comparing employment statistics. ‧. over time. This will determine if the World Cup had any particular or significant impact on these. sit. y. Nat. figures. I suspect that the World Cup bidding system and FIFA’s expectations and regulations. n. al. er. io. may perpetuate or even guarantee a marginalization of a massive proportion of the population. v. whilst a select few firms, corporations and individuals stand to benefit exponentially. This study. Ch. engchi. i n U. will address the issue and determine to what extent, if any, this is true. However, many South African’s who were in the country during the 2010 World Cup and made no financial gains out of the event, or even attended a game I still look back on the event with much pride and consider it a relative success….why? By investigating and presenting intangible and non-quantifiable factors and variables, particularly for a country with South Africa’s history, I hope find reasonable justification for why South Africa and other developing nations may want to host mega-events. 32.

(33) Chapter 2: Analytical Research and Analysis The following section of this dissertation shall be a more hands-on investigation of the megaevent with a particular focus on the exclusion of the informal sector as well as forced removals and evictions of inhabitants of low cost housing and the homeless peoples. My attention shall be focused here because, firstly, it is the voices and needs of these groups that are most often unheard, ignored or simply exploited by neoliberal capitalist activities which, as I will argue, the FIFA World Cup essentially is. Secondly, unlike in nations like Germany, where the 2006 World. 政治大. Cup was hosted, poor, disenfranchised peoples and communities of this nature often make up. 立. the majority of the populace in the developing world. Hence any activity or event, particularly. ‧ 國. 學. those that claim to be benefactors or champions of the poor needs to be checked and double. ‧. checked for its social consequences and encouraged to behave in a socially responsible manner. If developing nations are going to be bidding to host MEs in the future it is important that they. y. Nat. io. sit. and policy-makers know how to protect vulnerable groups. The 2010 edition of the event was. n. al. er. indeed informed and underpinned by that 4 years prior in Germany, however, and quite. Ch. i n U. v. unfortunately, a direct superimposition of one event on the other can only lead to ‘unforeseen’. engchi. discrepancies and social backlash. As mentioned in the previous chapter, the World Cup is organized by 3 major stakeholders, namely; FIFA, the LOC and the national government but a 4th stakeholder in population/society has very little input and, bar entertainment for those that can afford it, receive very little output or benefits either. In essence, commitments and pledges are made without consultation of societal stakeholders and this perhaps explains why FIFA, the government, and elites in general label the event as a success and yet the pulse on the ground can have a different beat. 33.

(34) The size, popularity and reach of the World Cup globally have made the event far bigger than a simple series of football matches. The prestige and, of course, financial repercussions have made it not only the most coveted prize in sport with regards to competing in and winning, but also to host. If this notion holds true for most countries, even those that are not traditional football strongholds, then this sentiment is certainly most pertinent in the developing world, particularly Africa where the tournament had yet to be hosted. This is because the World Cup has transcended far beyond a mere sporting event, into a global spectacle and has evolved into. 政治大. a massive marketing tool for corporations and nations alike. I have already written at length. 立. about the marketing and reimaging strategy adopted by many nations when bidding for and. ‧ 國. 學. hosting mega-events of this nature. This notion was so pertinent and central to South Africa’s bid that a National Communication Partnership was established between the International. ‧. Marketing Council of South Africa and the state government. Whilst working in tandem with a. y. Nat. sit. host of public relations firms on the continent and around the world, they were tasked with. n. al. er. io. selling an image of Africa as a continent with prosperity and opportunity, devoid of the poverty. i n U. v. and instability that so often characterizes images and perceptions of the continent abroad. Ch. engchi. (Jordaan, 2008; Webb, 2010). The fact that Qatar, for example, a country ill-equipped, horribly suited (desert heat) and with very little history or interest in football, bid and won the rights to host the tournament in 2022 is testament to the perception and public relations element encompassed in hosting, because clearly football in and within itself is not the primary motivation to host for Qataris. Although it is vitally important that the west has more balanced understanding of Africa, which requires the showcase of the ‘other Africa’ which these firms and their campaigns promote, unfortunately what happens with regards to mega-events is that 34.

(35) the marketing imagery and jargon we use to sell ourselves and convince the world of our hospitality and investment value somehow becomes the only Africa we wish for the world to see. This point is particularly poignant and significant in relation to the World Cup when one considers how and why racialized, classist gentrification in the shape of evictions, removals and exclusions inevitably takes place when any nation, particularly a developing nation embarks on a project where the selling of perceptions, the changing of images or the reshaping of a national brand is a top priority. This type of marketing reduces the complexities and very real struggles. 政治大. of a society like South Africa’s to tasteful, inoffensive images that are fed to the world. The. 立. trouble lies in maintaining that fabricated, one sided image when the tourists arrive and this. ‧ 國. 學. manifests as a pretense that no such poverty or depravation exit, to sweep the scourge of the poor under the proverbial carpet so to speak (Webb, 2010; Bolsmann, 2013). This sequence. ‧. highlights a neoliberal solution to a neoliberal problem encountered whilst organizing an event. er. io. sit. y. Nat. in a neoliberal fashion.. With the World Cup being a global event it is highly susceptible to external pressures which can. al. n. iv n C coerce or constrain the state government and organizers ofU the event. This pressure can be he ngchi exerted by overt ‘recommendations’ such as the one that lead to the building of the Green. Point Stadium as opposed to renovations to the facilities in Athlone or Newlands. A second way in which FIFA and affiliates impose their will is through bills, acts and agreements which, at times, require a change of state & constitutional law, thus essentially undermining the host nation’s sovereignty. By appreciating how the Host City Agreements or the notorious Slums Act operate, for example, we would be better equipped to analyze and understand if, through state legislature, FIFA and the World Cup ‘legally’ discriminate against and marginalize individuals 35.

(36) and groups that don’t share the same interests. Host City Agreements were, for the most part, utilized by FIFA to get guarantees that local and municipal government will pull no stops in assuring that public and marketable spaces are monopolized by FIFA and that the interests of FIFA and her affiliates are always stringently protected. The result of this is the government’s cooperation in the economic exclusion of all non-affiliates, and this has a drastic effect on the informal sector and the poor. The Slums Act on the other hand, had a mandate of eliminating substandard housing conditions by giving the Housing MEC authority to prescribe a time in. 政治大. which it would be compulsory for municipalities to evict unlawful occupiers of slums as well as. 立. all shack dwellers if landowners failed to do so. Both the Agreement and the Act we criticized. ‧ 國. 學. by civil society as they were deemed to be anti-poor and in contradiction with South Africa’s constitution. The ambition and desire to showcase South Africa as a world class destination at. ‧. the cost of those that perhaps do not fit in with that definition was of such importance to the. y. Nat. sit. organizers that a movement aptly named the World Class Cities for ALL (WCCA) campaign was. n. al. er. io. launched with the purpose of highlighting inequality and uneven distribution of resources and. i n U. v. benefits with regards to the World Cup. WCCA, as both a notion and a campaign, shall be. Ch. engchi. explored and further elaborated upon later in this paper, but the golden thread highlights how this World Cup, in rather contradictory fashion, emphasized the notion of world class panAfricanism and yet the entire event was set against a backdrop of abject poverty and systemic exclusion, whilst FIFA essentially commandeers the government and manipulates the economic/market space to serve herself and her multinational corporate affiliates. As with many areas of social life that would not usually receive such scrutiny in most parts of the world, football in South Africa is a highly politicized and racialized space. Similarly, although racial 36.

(37) apartheid is constitutionally abolished, the cities and the spaces that are hosting the World Cup remain structured and shaped by the past, thus creating politicized spaces that inadvertently adopt a more classist apartheid (which inevitably has a racial tinge itself). 2.1 Informal Economy: Marketeers and Street Vendors Unlike in the developed north, developing nations and emerging economies are likely to have a large proportion of their workforce engaged in informal activities and a noteworthy amount of. 政治大 policies and development initiatives do not incorporate or empower poor people and members 立. the economy and fiscal flow will also be concentrated in the informal sector. When government. ‧ 國. 學. of the informal sector but focus on capitalist, neoliberal means of development and investment, then the results are inevitably economic exclusion, a lack of upward mobility and an ever. ‧. widening gap between rich and poor. It should go without saying that the informal economy. sit. y. Nat. will continue to grow exponentially as people seek a means to survive. My point here is to. n. al. er. io. highlight and illustrate the irony and contradiction of the economic development policies. v. adopted and encompassed by FIFA and the LOC when delivering the World Cup to South Africa.. Ch. engchi. i n U. The notion of ‘world class’ is one that underpinned South Africa’s World Cup right from the bid to its post-mortem, and the countries ambition to achieve such a status became dangerous and irresponsible at times. Dealing with and resolving socio-economic problems seems to have lost its place on the agenda and was replaced with an acceptance to simply hide and ignore said socio-economic problems. The irony I refer to here is found in, for example, the fact that in an attempt to present the country as a 5star, world class destination, the policies past and decision taken very often slowed down the countries progress and ensured that the title ‘world class’ is. 37.