Lesson 2: Challenges associated with the organization of major events

Similar documents
Major sports events Are they worth the money?

R. M. Nureev, E. V. Markin OLYMPIC GAMES ECONOMICS

Bid Procedure for the Games of the Olympiad of 2012

real-life, high-stakes bidding game from McMillan.

The Olympics, Risk and Governance

Long-term impacts from major sporting events myths and facts

11. Bidding in Olympic Competition

Gender Equality in Sport Commission Croatian Olympic Committee

AFTER SOCHI 2014: COST AND IMPACTS OF RUSSIA S OLYMPIC GAMES INSIGHT SOCHI THE BUILDING ECONOMIST - SEPTEMBER

Case study THE TOPS PROGRAMME

IOC SOCIOECONOMIC IMPACT OF OLYMPICS PAGE 1. IOC International Olympic Committee Socioeconomic Impact of Hosting the Olympic Games

2014 Excellence in Mathematics Contest Team Project

Past World-Class Events: Reflections on Network Reliability Issues

Why Great Britain s success in Beijing could have been anticipated and why it should continue beyond 2012

Learning from experience: How hosting the Olympics can leave a positive legacy

ALL ABOUT THE 2016 RIO SUMMER GAMES

NAME DATE/LOCATION COMPETITION/RESULT

THE PENNSYLVANIA STATE UNIVERSITY SCHREYER HONORS COLLEGE DEPARTMENT OF ACCOUNTING ECONOMIC EFFECTS OF HOSTING THE OLYMPICS MARY BYRNE SPRING 2016

2012 Annual Conference THE HEAT IS ON! A New World Competition

Another Big Dig: Establishing a range for the cost of a Boston Summer Olympics

THE FIGHT AGAINST DOPING AND PROMOTION OF ATHLETES HEALTH UPDATE - MARCH 2008

AUSTRALIAN TEAMS OVER TIME

The global sporting arms race

The Effects Hosting an Olympic Games has on the Host Nation's Economy


Leveraging the Sydney Olympics for tourism

Oscarsborg, Norway September 2010

EACES biennial congress Budapest, September 4-6, 2014

Some questions about evaluating the urban legacy of Olympic Games

PROGRAM TO SUPPORT INTERNATIONAL, NATIONAL AND METROPOLITAN SPORTING EVENTS PROGRAM. Metropolitan sporting events. Bids for sporting events

THE ROCKY ROAD TO LEGACY

Figure Skating. Figure skating: a long standing tradition in NOCs emerging from the break-up of the USSR

FACTSHEET THE OLYMPIC MOVEMENT

PRO/CON: Should the Olympics stay in one place?

BID GUIDELINES 2019 ASPC FORUM ON ELITE SPORT

Session 4. Growth. The World Economy Share of Global GDP Year 2011 (PPP)

2014 Excellence in Mathematics Contest Team Project

Research on Effect of Beijing Post-Olympic Sports Industry to China s Economic Development

PART 1: INFRASTRUCTURE OPPORTUNITIES

VANOC Vision, Mission & Values

JET SET SPORTS and COSPORT. Welcome you to the Paralympic Summer Games in Rio 2016!

2018 IOC EVALUATION COMMISSION MEMBERS BIOGRAPHIES. Ms Gunilla LINDBERG - Commission Chair (SWE)

TO: FROM: SUBJECT: RECOMMENDATION

1 PEW RESEARCH CENTER

OLYMPIC MARKETING FACT FILE 2018 EDITION

Bid Procedure for the Olympic Winter Games of 2010

In 1948 it was more a matter if London wanted the Games than which other cities were its rivals.

UNITED 2026 BID: TRAINING SITE AGREEMENT. Park Board Committee Meeting Monday, February 19, 2018

Global Construction Outlook: Laura Hanlon Product Manager, Global Construction Outlook May 21, 2009

City of Toronto. Feasibility study in respect of hosting the 2024 Olympic Games and/or the 2025 World Expo. 20 January 2014

Press Release PR /CD

OLYMPIC MARKETING FACT FILE 2019 EDITION

Shaun Poole - Communications

Energy Security: Markets and Policy

Digital Transformation. for the Olympic Games

NUMBERS, FACTS AND TRENDS SHAPING THE WORLD FOR RELEASE FEBRUARY 11, 2014 FOR FURTHER INFORMATION ON THIS REPORT:

SOCIAL IMPACTS OF HOST CITIES

EXECUTIVE SUMMARY Cost and Revenue Overruns of the Olympic Games Prof. Holger Preuß Prof. Wladimir Andreff Maike Weitzmann

Safety culture in professional road transport in Norway and Greece

BIATHLON: History of Biathlon at the Olympic Winter Games. Reference document

EMBARGOED UNTIL 00:01 THURSDAY 9 AUGUST 2007 RESEARCH NOTE 17 HIDDEN COSTS OF 2012: CONSTRUCTION INFLATION TO COST 4 BILLION

USA FREESTYLE SKIING OLYMPIC HISTORY

Euro 2012 economic impact on host cities in Poland

FACT Sheet. FIFA Competition winners at a glance. Men s Competitions. FIFA World Cup (staged every four years)

Sports, IP and Development

Economic Impact Analysis on Olympic Host- Cities

ADDRESS TO THE FOUNDATION FOR SCIENCE AND TECHNOLOGY JULY 9

OLYMPIC MARKETING FACT FILE 2017 EDITION

Caroline Visser, IRF Geneva. IRF World Meeting, Lisbon Wednesday 26 May 2010 INTERNATIONAL ROAD FEDERATION FEDERATION ROUTIERE INTERNATIONALE

Transport and mobility management challenges for the world largest mega-event: 1992 to 2012 Summer Olympic Games

APSE. National Sport & Leisure Seminar. The Olympic Legacy. Shaun Dawson - Chief Executive Lee Valley Regional Park Authority

Submission to the Victorian Government s Review into Static Betting Advertising

The Emotional Factor in a Bid Presentation

ENVIRONMENT AND SUSTAINABLE DEVELOPMENT UPDATE FEBRUARY 2008

Efficiency Indicators of Railways in France

Inequality in America : The 1% in International and Historical Perspective

What did the World Student Games do for Sheffield? The 1991 Games as the catalyst for the regeneration of Sheffield

An Overview of Recent Auction Formats

The challenges of hosting major events owned by International Federations. - The 2014 Chess Olympiad

10] After the opening ceremony, the transport system functioned well. T F NI

Call for applications

Economic Outlook March Economic Policy Division

CHINA and NORWAY. collaboration in the field of anti-doping

Media, Brands & Marketing and Major Events: essential revenue streams for the business of sport


Report to COUNCIL for decision

We Finally Won Something! How Special Events and the 1996 Olympics Contributed to Georgia s Economic Growth

Olympic transport and sustainability Philippe H. Bovy

CITY OF VANCOUVER ADMINISTRATIVE REPORT

Canadian Sport Tourism Alliance Congress Ottawa

RR-2 ADMINISTRATIVE REPORT

Denver, Colorado USA. Olympic and Paralympic Winter Games Exploratory Process January-March 2018

Beijing Olympic/Paralympic Analysis & Trends. by Sean Scott High Performance Advisor Road to Excellence

URBAN LAND INSTITUTE

The Shifts and the Shocks Martin Wolf, Associate Editor & Chief Economics Commentator, Financial Times

AC or DC Transmission for a Remote Wind Farm?

FACT Sheet. FIFA Competition winners at a glance. FIFA Men s Competitions. FIFA World Cup (staged every four years)

RISI EUROPEAN CONFERENCE. (Barcelona, 6 March 2018) The European Economy Things look good just now. Can this last?

Authority to Enter Into Bid Agreements for the 2026 FIFA World Cup

Sustainable renewal in the Olympics. A question of legacy.

Transcription:

The United Nations Convention Against Corruption Safeguarding against Corruption in Major Public Events Lesson 2: Challenges associated with the organization of major events

WHAT IS IT ABOUT MAJOR EVENTS THAT MAKES THEIR ORGANIZATION VULNERABLE TO CORRUPTION?

Learning outcomes Understand why major international events hold a very high risk of corruption; Understand that the organization of a major event is also a very significant opportunity to demonstrate the efficacy of key corruption prevention measures and to leave a very positive legacy of integrity in large public sector projects; Identify some of the major challenges associated with the organization of major events and their implications for the prevention of corruption.

Costs out of control? As widely reported by the media, the Russian town of Sochi hosted the most expensive Olympic Games ever at a cost of about $50 billion. The price tag, which includes a major upgrade to Sochi's infrastructure, outstrips the $40 billion China is thought to have spent on the Beijing Summer Games. It is more than three times the cost of London 2012. When it won the bid in 2007, the costs of the Winter Games were estimated at $12 billion. That figure ballooned as a huge effort to build new sporting venues, roads and hotels gathered pace.

Sports-related cost overruns, Olympics 1960-2012; original currencies, real terms Games Country Type % Cost Overrun London 2012 UK Summer - 101% Vancouver 2010 Canada Winter- 17% Beijing 2008 China Summer 4% Torino 2006 Italy Winter 82% Athens 2004 Greece Summer 60% Salt Lake City 2002 USA Winter 29% Sydney 2000 Australia Summer 90% Nagano 1998 Japan Winter 56% Atlanta 1996 USA Summer 147% Lillehammer 1994 Norway Winter 277% Barcelona 1992 Spain Summer 417% Albertville 1992 France Winter 135% Calgary 1988 Canada Winter 4-59% Sarajevo 1984 Yugoslavia Winter 173% Lake Placid 1980 USA Winter 321% Montreal 1976 Canada Summer 796% Grenoble 1968 France Winter - 201% Bent Flyvbjerg and Allison Stewart (2012). Olympic Proportions: Cost and Cost Overrun at the Olympics 1960-2012. Saïd Business School working papers, The University of Oxford.

The sport of Understating Expenses It doesn t happen at every Olympics, but for many (Montreal, Moscow, Sydney, Athens, London) this is how you play. It s pretty simple really. 1) Understate the expense of the Olympic Games upfront in order to sell your citizens and nation on the economic merits of hosting the Olympics. 2) Act surprised when expenses begin to escalate. 3) Act surprised when revenue and economic benefit projections aren t met. American sports fans are no stranger to this game. The rules are similar to the stadium game. You know, where city leaders and team owners overstate benefits while understating costs of building new sports facilities, and by the time construction is completed the eventual costs to the public are significantly higher than projected while benefits may not accrue as much or as swiftly as advertised. Source: Patrick Rishe, How Does London's Olympics Bill Compare to Previous Games?, Sports Money, 8 May 2011.

Questions for discussion Are cost-overruns in the organization of a major event necessarily a sign of corruption? Can costs escalation be attributed in certain cases to corruption? In your view, could the cost escalations described in the case study have been anticipated and prevented?

Specific challenges The stakes involved in organizing a highly-publicized and internationally anticipated major public event can be very high. Any failure is potentially rife with financial, economic, and political consequences for the responsible agency, sponsors and the country involved. The political nature or the politicization of such events including the close relationships between organizers, politicians, the private sector, sponsors and the media can create a high-risk environment for corruption. The exceptional nature of these events increases the likelihood that regulations and standard procedures might be relaxed or set aside.

Time constraints: The shortness of time may make it difficult for existing monitoring, auditing and accountability mechanisms to effectively perform their functions and have the desired impact. Governance issues: The organization of major events is often delegated to a special, dedicated team or agency that does not always fit squarely within existing public management structures and processes. A team s relative inexperience with respect to the organization of such a large-scale event adds to the risk of corruption as excessive responsibility, power and money may be given to event organizers who may not necessarily have the required managerial and organizational skills. Large scale recruitment and training of personnel required within a short period of time.

Requirement for the procurement of goods, infrastructure and services on a very large scale, usually with significant time constraints. The complexity of the numerous contracting and sub-contracting arrangements involved in the organization of major events, either with private companies or public sector agencies, often on an international scale.

Key points to remember Major international events hold a very high risk of corruption, in part because of their special nature and unique requirements. The organization of a major event is also a very significant opportunity to demonstrate the efficacy of key corruption prevention measures and to leave a legacy of integrity in large public sector projects. There are major challenges associated with the organization of major events and each of them may render the whole initiative particularly vulnerable to large scale corruption. The costs of organizing a major event can be substantially increased as a result of corruption.