Olympic Economics

It would be interesting to have a cost benefit analysis of the Beijing Olympics. It seems the Chinese have spared little expense in trying to impress the world with an immaculate Games.

It is estimated that hosting an Olympic games can have a net economic benefit of £5billion. Although research by Price Waterhouse and Coopers find that Olympic games rarely lead to a boost in economic growth rates.

Of course, China is not just thinking about the economic impact; they see the Olympics as a way of impressing the world. Compared to the political impact of the Games, £5billion is relatively insignificant for an economy the size of China.

These are some of the costs and benefits of hosting the Olympics

On a side note - Congratulations to cyclist Nicole Cooke, on winning GB first Olympic Gold.