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Level Of Australian Commonwealth Games

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At present, Australia is the only country in the world to host the Commonwealth games on a record of four occasions, and lead the way with a staggering 803 gold medals and have over 2000 medals. In this manner, Australia aspires to continue its effulgent success for the upcoming 2018 Commonwealth games and substantiate to the world that it continually hosts the most inspiring, trend-setting, memorable Commonwealth games for all the athletes. For the 2018 Commonwealth Games, Gold Coast is hosting the aforesaid and unambiguously like other previous cities that hosted the games, it also yearns to take this opportunity to modernise its infrastructure and showcase that their city is a world-class city. However, this essay will use the cost-benefit analysis approach and determine if it is a sound decision or not economically, socially and environmentally and if it creates positive or negative externalities. In addition, this essay will also state and recommend that the Commonwealth games will not benefit the Gold Coast in any way and the government should have invested in something else.

In this cost-benefit analysis essay, there are three aspects to consider but this paragraph will predominantly focus on the economics cost-benefits of the Gold Coast Commonwealth games. Economically it can be clearly said that the commonwealth games will be a loss because the Queensland government is investing more than 1.5 billion dollars when recently Premier Campbell Newman said the state is ‘on a power dive into the grand canyon of financial disasters and we struggle to reduce the $2.8 billion budget deficit and a $65 billion debt (source 1 and 6). Accordingly how are they going to invest this much money and assume that it will be recovered along with the debt they have? In addition, other costs of hosting the commonwealth games is that infrastructure gets built, but there will be limited uses once the event is over. Transport such as light rail designed to ferry thousands to an event only held once might not be the most useful transport once fans go home (and why do governments only build needed infrastructure until a major event forces them to?) In point of fact if the government took the other option that was opportunity cost it would have been more beneficial for the rest of Queensland. The option that was foregone was actually investing $2bn in hospitals for CT scanners MRI machines and investing in other priorities like schools (source 4). Investing in this would have been better because they were the contemporary priorities that they had to achieve and by not doing this might affect their economy further. To an even greater extent, the Queensland government should also think about discounting approximately every year because due to inflation the prices of tickets now might be less in the future and the profit they get, might be very less. Even though they discounted 5%(Source 1) Last but not the least, it can be said that economically the commonwealth games will have more costs than benefits and Gold Coast should have learned from other cities like New Delhi and Sydney who did not get the success that they anticipated for from hosting big events like these.

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Despite having a diminutive loss economically due to the commonwealth games, socially Gold Coast is going to do marginally better and will have more benefits than costs. To continue, no matter what happens the main accomplishment that all Australians aspire to have is that national and local pride. As a matter of fact, Australians may not receive that big ‘pride’ very much because of the other events and unless they astound the viewers with perfect planning and getting good feedback from their own residents and the tourists, they will not receive it. Also as a matter of fact, the games will be hosted on a frenetic sports calendar and there will be Soccer World Cup, Winter Olympics, Summer Youth Olympics all running at the same time. Consequently, hosting the Commonwealth games in the same year can give Australia a bit of bounce but unless there’s something to maintain the interest better than the aforementioned events, the tourists will move onto the next fad (source 6).

In addition, one main social consequence that Gold Coast will receive from its residents is the light rail and the congestion when it is finished and the disruption of building the networks can infuriate them. The congestion will occur because government is not investing on what most people prioritised- expanding the roads and if they did then traffic would have reduced and other athletes would not have complained. Nevertheless the government is hosting a huge amount of money when light rails do not work and exasperate the residents. It exasperates them because there will be more congestion on the roads, it can inconvenience transit riders, make local people living close to the development move out and waste all the residents’ tax money. Additionally, all the governments think when hosting any big event it is best to tidy up and relocate the homeless and the gangs. What can happen

In consequence Australia’s natural resources are reaching a crisis point, as they struggle to support and sustain the country’s lifestyles. But while degradation and other environmental impacting events are still occurring, research suggests that the level of the concern for the environment is falling. Consequently this event will create a lot of environmental impact and negative externalities because recently the state government has given permission to kill protected animals that stray into venues during competition. Why would they wish to do something like that? They will do anything so they can look positive in front of everyone when they are doing something cold-blooded and ruthless to these poor animals without anyone knowing. This type of stuff can lead to very big negative externalities and even reduce the number of tourists that are arriving to Gold Coast to see these native animals. In addition, it is also hard to value tangible stuff like these because in the future they might be really useful for the nation and Gold Coast. To continue having big crowds for events like these can deplete some useful natural resources and it is very important to look at this type of stuff because nowadays resources are scarce and it is a priority to value them correctly. Some of the environmental impacts that can occur is over use of fresh water, increased air pollution, increased littering and loss of bush if any site is developed for accommodation. Finally last but not the least, protecting an exquisite environment like Gold Coast is important because in the future it can bring huge benefits and valuing it is insurmountable because environmental matter like that are intangible and no economist can give a true value to them.


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