Sports and Development: An Economic Perspective on the Impact of the 2010 World Cup in South Africa
Sports and Development: An Economic Perspective on the Impact of the 2010 World Cup in South Africa
Jo Swinnen and Thijs Vandemoortele
LICOS Centre for Institutions and Economic Performance
Katholieke Universiteit Leuven
Version 2 February 2008
Introduction
The relationship between sports and development can be analyzed from different angles – some of these have received quite a bit of attention in the literature, others less. An important share of the literature focuses on football (soccer), baseball, and basketball because these sports are played most widely and because of the large economic interests. It is important to first define “development”. Sports obviously affects a person’s physical development, and also his or her social and psychological development,1 all contributing to the wider “development” of society, a reason why the United Nations organized the International Year of Sport and Physical Education in 2005, and incorporates sports into its programs and policies (UN sport for development and peace, 2006). Another definition of sports development refers to the creation of a sports infrastructure and a sports competition in developing countries. The basic principle behind this perspective is the universal right of all people to play and sport.
This paper takes a specific view by focusing on the relationship between sports and economic development, in particular income growth and poverty alleviation. We focus mainly on the causal effect from sports to development.2
In Europe and North America, sports are increasingly important to the economy. About 2 million people are employed in the sports economy in the 15 member countries of the European Union – that is, 1.3 per cent of overall EU employment. And the sports economy is growing. In Europe, in the early 1970s, the ratio of overall sport expenditures (for goods and services) to GDP was around 0.5 per cent. In 1990, the ratio ranged between 1 and 1.5 per cent of GDP in most
Jo Swinnen and Thijs Vandemoortele
LICOS Centre for Institutions and Economic Performance
Katholieke Universiteit Leuven
Version 2 February 2008
Introduction
The relationship between sports and development can be analyzed from different angles – some of these have received quite a bit of attention in the literature, others less. An important share of the literature focuses on football (soccer), baseball, and basketball because these sports are played most widely and because of the large economic interests. It is important to first define “development”. Sports obviously affects a person’s physical development, and also his or her social and psychological development,1 all contributing to the wider “development” of society, a reason why the United Nations organized the International Year of Sport and Physical Education in 2005, and incorporates sports into its programs and policies (UN sport for development and peace, 2006). Another definition of sports development refers to the creation of a sports infrastructure and a sports competition in developing countries. The basic principle behind this perspective is the universal right of all people to play and sport.
This paper takes a specific view by focusing on the relationship between sports and economic development, in particular income growth and poverty alleviation. We focus mainly on the causal effect from sports to development.2
In Europe and North America, sports are increasingly important to the economy. About 2 million people are employed in the sports economy in the 15 member countries of the European Union – that is, 1.3 per cent of overall EU employment. And the sports economy is growing. In Europe, in the early 1970s, the ratio of overall sport expenditures (for goods and services) to GDP was around 0.5 per cent. In 1990, the ratio ranged between 1 and 1.5 per cent of GDP in most
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