Decisions of this nature should be based upon and measured against certain basic principles regarding the proper role of government. Functions of a government can be broadly categorized as;
In fact these are just indicative types of functions. It is amply clear from these points that the government is supposed to perform a range of tasks in order to look after its people. Now the question arises, "Should the government give financial aid to such projects like the World Cup Soccer, or the Olympics events and why" On the face of it, one ponders to think as to why the government should go whole hog after such an event ignoring its majority of the priority areas. But on deeper thought we realize that there's something beyond the 'apparent truth'.
An event of this magnitude gives wide exposure to the country in the international arena. This sort of event generates worldwide interest and people from all over the world flock to the scene of action. Therefore, the government is duty-bound to facilitate such visitors.
Governments of the host nations try their level best to make sure that such events become tools for encouraging tourism potential of the country. Towards this end, the government facilitates the organization of this event in different attractive corners of the country. For example during the world cup soccer-2006 sports enthusiasts' came to know about the beautiful historical cities like Berlin, Munich, Stuttgart, Frankfurt etc. while the lesser known cities like Dortmund, Leipzig, Nuremberg, Gelsenkirchen etc. also came on the tourist map.
Similarly all efforts are on to make sure that the London Olympics 2012 becomes an opportunity for the world to know more about UK, its heritage, economic potential and the love of British nationals towards sports. In fact, immediately after organizing the highly successful Commonwealth Games in Manchester, UK Govt started lobbying for the 2012 games. The speculated expenditure for organizing an event of this magnitude is around 8 billion pounds, but London Mayor is confident that London Olympics will bring profits for UK.
This will result in generation of revenues for the federal governments as well as for the local governments. The real estate industry gets a big boost as the government starts gearing up for modern infrastructural facilities. Government gets revenues in the form of taxes, sponsorships etc. Revenues earned this way, by the country will of course be put to use for the sake of the countrymen.
In fact government is also duty-bound to encourage all the sporting events. Sports like Tennis, Cricket having the backing of wealthy sponsors will continue to prosper even if the government looks the other way round, but sporting events like athletics, swimming may suffer if no government backing is provided.
In today's market driven economy concept, the art of communication to existing consumers as well as prospective consumers takes a great deal out of the managerial brain storming sessions. Therefore the respective governments make all out efforts to strengthen the communication channel through sporting