As most of us are aware, Russia is currently hosting The Sochi 2014 Winter Olympics. Russia hopes that hosting this big event will lead to more jobs and boost its economy. However, some experts argue that Sochi Olympics, which is expected to be most expensive Olympics games in history with cost of over 50 billion dollars, will not boost Russia’s national economy in anyway. The European Bank for Reconstruction and Development (EBRD) argues that hosting the Olympics “may create a lasting legacy for the city of Sochi and the southern Krasnodar region of Russia, which will benefit from improved services that may attract business in the future.”
EBRD says that countries generally do not benefit economically from hosting big events such as the Olympics, but infrastructures and jobs are created and will last for awhile after the events are over. Reports show that “37 projects from the 235 projects undertaken in preparation for Sochi were road projects and the athletes quarters, which will be turned into affordable housing for local residents. “ These projects will help the economy in Sochi for sure.
However, Russia itself will not benefit economically from hosting the event due to the cost. Also, we usually think that Olympics create jobs, but it is different in Russia. Russia currently has low unemployment, leaving limited scope for creating of new employment by hosting big events. So, EBRD is not sure about the economic benefits that Russia will get.However, one positive outcome of hosting the Olympics for Russia is that it will not worsen its debt situation.