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Why The Olympic Bid Process Is Corrupt And How It Majorly Changes Your City…

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  • Several Olympics of the last two decades have faced questions over vote-buying, including the upcoming 2020 Games.
  • In the past two decades, both the overt and hidden costs to host the games have ballooned, with host cities picking up the tab.
  • Although corruption allegations appear to be consistent, with the increasing costs, in the last couple of years, many cities and countries have pulled out of bids for the games.

Authors Note: During the research for this piece about the Olympics, I found more information than I couldn’t fit into the video. I wanted to share some of those details with you, so what follows below is a more detailed version of the video we have produced! Thanks for watching.


What It Takes To Host The Olympics

The Olympic host city is determined by a multi-year bid process that involves significant planning from the prospective host city. International Olympic Committee (IOC) members visit the potential cities and evaluate the plans and visions of the cities. In the case of the 2024 Olympics candidature process, the IOC required a total fee of $250,000. The planning phase alone typically accounts for tens of millions of dollars in expenditures from host cities. Chicago spent around $100 million in a failed bid for 2012, and Tokyo spent upwards of $150 million in their failed 2016 bid, according to Transparency International.

The bid process most recently changed in December 2014, governing bids for the 2020 Olympics and onwards. The IOC claims their new process is designed for cities to create a Games that “fits their sporting, economic, social and environmental long-term planning needs” while also “reducing costs for bidding…and providing a significant financial contribution from the IOC.”

That process lasts about two years in total, with cities sometimes dropping out of the bid at one of the three stages of the process. Stage one encompasses mostly planning and the vision for the Games, while Stages two and three focus more on the concrete: legal considerations, venue funding, how the Games interact with government, and of course, delivering the Games. The IOC Candidature page states, “Olympic Agenda 2020 has highlighted the need for a shift in the candidature process in order to accommodate different solutions to meet Games needs within different cities’ contexts. To enable this the IOC has placed even further emphasis on sustainability and legacy.”

The History of Olympic Corruption

The reality is that the newest policies do little to address what appears to be continued vote-buying in the Olympic bid process – vote-buying that was perhaps most prominently exposed in 1998 over the 2002 Salt Lake City Olympics. After multiple investigations, including one chaired by a former U.S. Senator, what was exposed was an extensive vote-buying scheme where roughly $1.2 million of cash, scholarships, jobs, medical treatment, shopping sprees, and other expenses made their way into IOC delegates’ hands from the Salt Lake City Olympic Committee. In total, 10 IOC members either resigned or were forced out, and several indictments were levied against bid committee members.

In the midst of the investigations into Salt Lake City, Japan’s 1998 Nagano Games came under question. According to Japanese media, the bid committee for the 1998 Nagano Olympics spent an average of $22,000 on 62 visiting IOC members, but the records were conveniently destroyed. Richard Pound, head of one of the independent investigations and former vice-president of the IOC, claimed, to the credit of the IOC, that it neither fostered nor encouraged corruption in its delegates.

Even though the IOC allegedly didn’t encourage corruption, they still responded to the scandal by instituting significant reforms that include a still-extant Ethics Commission and a special commission to write a new Code of Ethics. Part of the IOC’s reforms included prohibiting from visiting potential host cities. Andrew Zimbalist, Professor of Economics at Smith College and author of several books on the Olympic games, told Rogue Rocket that the bid process for the 2002 Olympics had great potential for bribing IOC members, especially when visiting cities.

“The potential host cities had open game to lavish all sorts of extravagant entertainment on these people, in some cases to give them cash bribes, in other cases to give the children of the members of the IOC free college tuition, in other cases to take them to massage parlors, qua prostitution venues,” Zimbalist explained.

An investigation of the 2000 Sydney Olympics found that two IOC members received paid trips to European sports events. In 2000, the New York Times reported that “About 30 of the I.O.C.’s 114 delegates have been linked to improprieties in bidding processes for those Games.”

In 2004, the BBC’s Panorama team aired an investigative report detailing their efforts to pose as local consultancy firm interested in helping bring the Olympics to London in 2012. The team connected with representatives who claimed they knew how to bribe certain IOC members – some members were susceptible to gifts, while others “just believe in sport.” One IOC member, Ivan Slavkov, met with the Panorama team and was eventually suspended for it. Slavkov claimed that he was posing as a double-agent, actually there to catch the vote-buyers, telling the BBC, “Whatever I could say during the meeting was intended to trap the ‘corruptors’.”

Despite the fact that less IOC members visit host cities today, Zimbalist told Rogue Rocket that “it doesn’t really do anything to stop vote buying or backstage dealing among members of the IOC.”

Carlos Nuzman, President of Brazil’s Olympic Committee was ensnared in a vote-buying scandal in 2017. The IOC suspended Nuzman for allegedly coordinating a two million dollar payment to an influential Senegalese athlete, Lamine Diack, to secure votes from delegates of African nations. Hundreds of thousands of dollars were found in Nuzman’s home. In Japan, Takeda Tsunekazu, the head of the Japanese Olympic Committee, is facing allegations that he also coordinated with Diack to buy votes through a separate channel – and perhaps most tellingly, for the same amount of $2 million. Takeda announced that he will resign this summer.

The Costs & Benefits of The Olympics

Yet even with the consistent peppering of vote-buying allegations plaguing the IOC, there is little question that the Games are perhaps the greatest stage for athletes, countries, movements, and ideas. What price can you put on the triumph of the U.S. Ice Hockey team over the perceived “Soviet Menace” in the 1980 Olympics? Is a bought vote outweighed by the symbolic gesture of Cathy Freeman, a member of Australia’s subjugated native population, lighting the Olympic torch in her own country’s Olympics?

The IOC seems highly attuned to the idea that the Olympics promote something intangibly more, highlighting the nebulous term “legacy” in promoting how past games have lived through to today. In fact, the Olympic YouTube channel has an entire series of videos dedicated to legacy, frequently using rhetoric like “touching millions of people” in the case of Beijing in 2008. Sometimes developmental achievements are highlighted, like when the IOC describes Barcelona in 1992 as an example for the Games “to transform [a city’s] urban landscape, strengthen its position on the world map, and create broader social and environmental benefits.” The IOC’s website and promotional materials for hosting the Games are littered with such lofty ideas.

The IOC website also spotlights more distinct economic stats from specific games: The Sydney games are estimated to have boosted GDP by around $5 billion, created more than 100,000 new jobs, and boosted tourism. The 2016 Rio Games, perhaps most known for their now-abandoned venues and stagnant water reportedly boosted foreign tourism by about 4.8 percent the year of the Olympics.

However, there is more than ample evidence that suggests the Olympics are exceptionally costly for the cities and countries that host them. Costs have grown enormously in the last decade, with no profit benefit for the host cities and countries’ governments. The 2004 games in Greece cost around $11 billion, and has even been credited with pushing Greece into a spiral of financial instability. The 2018 Pyeongchang games cost about $13 billion dollars, and one stadium will reportedly have been used just four times before being demolished. Authoritarian governments have been even more willing to pay top dollar for the exercise in theater that the Games have become: 2008 in Beijing cost roughly $40 billion with only about $3.6 billion in revenue; 2014 in Sochi, Russia cost about $50 billion, with a recurring maintenance bill of nearly $1 billion per year for taxpayers.

When speaking with Professor Zimbalist, he explained that part of the reason for this explosion of cost is how the Games have changed. “They were supposed to be athletic events, they were never supposed to be construction events.” The Games have “become very focused on this false notion of promoting economic development, of promoting infrastructure development, and paying attention to construction profits.” The IOC did not respond to our request for an interview.

Besides the monetary cost of the Olympics, the production of the Games has engendered less visible costs like displacement and ecological damage. “In most urban environments where land is scarce, and millions of people are living in the areas, people have to be moved,” Zimbalist said. For Beijing, Rio, and 1996 in Atlanta, thousands, and in some cases, millions were pushed out of their homes to make way for facilities. Producing the Sochi games amounted to declining biodiversity. The 2018 Pyeongchang games destroyed a forest of around 58,000 trees and displaced a village for a ski course.

But amidst the enormous costs that the Olympics have spawned, the 1984 Los Angeles games stands out as a trend-breaker. While those games took place before the more recent trend of increasing costs, they were the only to generate a budget surplus. The reasons are multiple: it was a privately funded games that benefited from the expertise of Peter Ueberroth, a business and marketing executive who would become MLB’s commissioner in 1984; a plethora of infrastructure already existed to support the Games, including hospitality and athletic stadiums; and Los Angeles received financial concessions from the IOC since interest in hosting the Games had been waning leading up to the bid for the 1984 games.

However, opponents of the upcoming 2028 Los Angeles Olympics believe there are plenty of reasons to reject the Games. Steve Ducey, an Organizer for NOlympics LA told Rogue Rocket that “displacement and gentrification” in Los Angeles communities, the “militarization of our police force” and the “diversion of public resources” are front of mind. “We see time as one of the most valuable resources that our city officials have. And how much time are they spending trying to welcome the world for 2028 when they could be spending that time addressing the things that are problems in the city right now.” Los Angeles suffers from a notoriously sticky homeless crisis that Cody Snell from our team examined earlier this year, highlighting that nearly 50,000 people were homeless in 2018. LA 2028 did not respond to our request for an interview.

Despite the costs that have become increasingly obvious in recent years, vote-buying scandals have not ceased to plague the Games. It is almost a wonder that a two-week celebration of sport that brings cities to a screeching halt could still be sought after.

Growing Disinterest in Hosting The Olympics

As these costs have become more evident to prospective host cities, protests and referendums have erupted in opposition to potential host cities’ bids for the Games. Hamburg, Boston, Innsbruck, Rome, Norway, and Calgary have all rejected the Olympics in varying capacities over the last couple years. Thus, a move away from the Olympics was born – and not for the first time. “There was a trend away several decades ago. In 1978, countries and cities were not interested in bidding,” on the back of disasters like the Munich Massacre at the 1972 games, Zimbalist explained.

The IOC is “at the precipice of having basically destroyed the interest around the world in hosting the Games because of what a heavy burden it has been in a financial way, in an environmental way, and in a social way,” Zimbalist told Rogue Rocket. Perhaps the IOC is awaiting another savior in Los Angeles for the 2028 games. But the IOC will have to grind through the scandal of the Tokyo Olympics, another fight with pollution in Beijing in 2022, a potentially underprepared Paris in 2024, and an as-of-yet unknown contender for 2026, before getting to their poster child – Los Angeles.

International

UK Prime Minister Theresa May Announces Resignation

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  • Theresa May announced her resignation as Prime Minister in a statement Friday.
  • May’s announcement comes after repeated failures to pass a Brexit deal, which prompted factions in her Conservative Party to push for her resignation and threaten a vote of no confidence.
  • May stated her resignation will be effective June 7, though she will remain as a caretaker prime minister until a new leader is appointed.

May’s Announcement

U.K. Prime Minister Theresa May announced Friday that she will resign effective June 7.

May became prime minister in 2016 after U.K. voters decided to leave the European Union. Since then, she has been tasked with leading the Brexit process, a task that has largely defined her three-year-long tenure as Prime Minister.

“I negotiated the terms of our exit and a new relationship with our closest neighbors that protects jobs, our security and our union,” May said. “I have done everything I can to convince M.P.s to back that deal. Sadly, I have not been able to do so. I tried three times.”

“But it is now clear to me that it is in the best interests of the country for a new prime minister to lead that effort,” she continued. May also said the process to elect a new leader will begin as early as next week, adding that she will remain as prime minister until that undertaking is completed.

However, the full election process will likely take several weeks, meaning that May will remain as a sort of caretaker prime minister until a new leader is inaugurated. She will stay on as a Member of Parliament after she steps down as prime minister, according to reports.

“It is, and will always remain, a matter of deep regret to me that I have not been able to deliver Brexit,” said May. “It will be for my successor to seek a way forward that honors the result of the referendum.”

Lead-Up to Resignation

May’s resignation is not unexpected. Members of Parliament in her own Conservative Party have been pushing her to step down.

Her announcement followed a meeting with Graham Brady, a powerful backbench Conservative leader, who informed her she would face a second no-confidence vote if she did not resign. May survived a separate vote of no confidence in December, but many still considered the vote the beginning of the end.

May has repeatedly failed to create unity on a Brexit deal, both within her own party and with the opposition Labour Party.

After more than two years of negotiations, May first put a Brexit deal before Parliament in January, but MPs voted against the deal by a 230 vote margin – the biggest defeat in Parliament’s history.

She proposed a second deal in March, but that deal was again defeated, though with a smaller margin of 149 votes. After the second deal failed, May tried a new tactic: she promised that if the deal passed, she would resign.

While this option seemed to appeal to the factions in her Conservative Party that favored her resignation, she still did not get enough votes to pass the third iteration of the deal. May tried for a final time to reach a deal last week, telling Conservative MPs that she would set a date for her resignation after Parliament approved a fourth Brexit deal.

The final straw came earlier this week when May’s “new” deal failed to satisfy both parties yet again. May later backed down after it became clear that the fourth deal, like the three before it, was inevitably doomed.

What Next?

May’s resignation will now usher in the race for a new Prime Minister.

Already, a number of Conservative candidates are vying to take May’s spot as prime minister. Some even campaigned for the position before May formally announced her departure. The current front-runner for the position is former Foreign Minister Boris Johnson, who lead the Brexit campaign in 2016.

Others are expected to run, and the timeframe for the election process depends on how many people put their hats into the ring.

Candidates must be nominated by two other MPs to run. In the case of only one candidate, that person automatically becomes the new leader. If there are more than two candidates, lawmakers vote to choose two candidates.

Once the two candidates are selected, all 120,000 Conservative Party members cast their vote for the next prime minister.

Conservative Party chairman Brandon Lewis said in a statement that MPs would begin the voting process on June 10. He also said that the new leader is to take office before Parliament’s summer recess, which usually begins in late July.

Until then, May will remain in office. The new leader will now be tasked with negotiating and passing a successful Brexit deal before the deadline on October 31. That deadline has already been extended twice from its original March 29 date.

See what others are saying: (The New York Times) (Vox) (BBC)

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International

Narendra Modi Re-Elected as Prime Minister of India

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  • India’s incumbent Prime Minister Narendra Modi won re-election in a surprising landslide victory.
  • The election, which was the biggest in the history of the world, was viewed as a referendum on Modi, who many feel has not fulfilled his campaign promises from 2014.
  • Modi campaigned on Hindu nationalism and national security this election and now is faced with impending economic problems, religious divisions, and increased tensions with Pakistan.

Election 2019

After six weeks of voting, the largest election in the history of the world has come to a close with incumbent Prime Minister Narendra Modi winning his re-elected by a landslide.

With almost all of the votes counted, Modi’s Bharatiya Janata Party (BJP) has won 303 seats in India’s 543-seat Parliament, which is much more than the 272 seats required for a majority.

Source: Google

The vote count is expected to wrap up later today, but Modi has already declared victory, writing  “India wins yet again!” in a tweet before appearing on stage to give a formal victory speech a few hours later.

Modi’s opponent, Rahul Gandhi, who is the leader of the opposition Congress Party, formally conceded the election in a news conference. “I said during the campaign that the people were the masters, and today they have given their verdict,” he said. “We concede in this election that Narendra Modi and the BJP have won.”

Gandhi also took to Twitter to congratulate Modi.

Narendra Modi

Modi may have won by a landslide, but his huge victory came as a surprise.

Before the election, the majority of analysts had predicted that the BJP would lose seats in Parliament. Now, it looks like the BJP is actually set to win more seats than they had before.

Many viewed this election as a sort of referendum on Modi, who is a strong Hindu nationalist. Modi and the BJP were first elected back in 2014 and they were extremely popular. In fact, they were so popular that the BJP became the first political party to win an outright Parliament majority in 30 years.

Modi is considered a hard-working, charismatic leader, with humble roots as a tea-seller. In 2014, he campaigned on improving India’s economy and cracking down on corruption. However, those promises have been largely unfulfilled.

Modi has not delivered nearly as many jobs as he has promised. Unemployment in India has also grown to 7.2 percent in the last year alone and the unemployment rate is currently the highest it has been in 45 years.

Modi also promised to double the income of farmers, who played a large role in electing him in 2014. However, in the last few years, India has seen the continued trend of farmers’ operating costs going up while incomes have gone down.

In fact, some of Modi’s economic and anti-corruption policies have also gone horribly wrong. In 2016, he instituted a sweeping demonetization policy that involved pulling 86 percent of India’s cash from circulation.

He argued that it would crack down on money that had not been taxed and fake currency that was being used to fund terrorist organizations, but India’s economy is largely cash-based, so the move ultimately hurt businesses and the poor.

Experts have said the policy did not actually hit the kind of money it targetted.

2019 Election

One campaign promise Modi did fulfill while in office was pushing and implementing Hindu nationalist policies.

As a result, in the 2019 election, he campaigned on Hindu nationalism and national security, telling voters that he was the only one who would protect India’s security and combat terrorism. In that regard, India’s recent conflict with their main rival and neighbor Pakistan seems to have helped him.

In February, a militant group attacked an Indian-controlled region of Kashmir, killing dozens of soldiers. Modi responded by promising forceful retaliation and later claimed his government had struck a major terrorist training camp in Pakistani-controlled Kashmir, killing “a very large number” of militants.

While Pakistan has denied that a camp was hit, Modi’s approval rating still skyrocketed from 32 percent to 63 percent.

What Now?

Modi’s strong brand of nationalism and his national security platform seemed to have propelled him to Thursday’s huge win, but despite his success, Modi’s troubles are far from over.

Now, Modi and the BJP will have more pressure to address India’s economic problems. In addition to growing unemployment, many fear that India’s economy is slowing and that the country could be heading into a recession. That will be exacerbated as Modi faces demands to provide jobs for the millions of young people who are now entering the workforce.

Modi’s win is also expected to widen religious divisions in the country. His brand of staunch Hindu nationalism is appealing to large swaths of India’s population.

While India is about 80 percent Hindu, it is also home to a number of other religions, and India’s religious minorities have said they have felt increasingly afraid and marginalized.

Since Modi took power, there has been a dramatic rise in hate crimes. According to Human Rights Watch, at least 44 people were killed between May 2015 and December 2018, and most of those people were Muslim.

India’s Muslim population is considerable, with around 200 million people that make up nearly 15 percent of the country. Now, Muslims in India are worried the BJP’s rise will disempower them, especially as the number of seats Muslim parties hold in Parliament is expected to fall to an all-time low.

Of course, there is also the question of Pakistan. Once it became clear that Modi was set to win the election, Pakistan’s military announced that it had successfully fired and tested a ballistic missile capable of carrying nuclear warheads.

At the same time, Pakistani Prime Minister Imran Khan congratulated Modi on Twitter, and said that he will “look forward to working with him for peace, progress and prosperity in South Asia.”

See what others are saying: (New York Times) (Vox) (BBC)

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International

Canada Hires Company to Remove Its Trash After the Philippines Announced Plans to Send It Back at Its Own Expense

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  • Philippine President Rodrigo Duterte has ordered his government to ship tons of trash back to Canada that he says was illegally dumped in the Philippines.
  • However, shortly after this announcement, Canada said that it would hire a shipping company to remove the trash by the end of June.
  • The trash was originally sent to the Philippians between 2013 and 2014 by Chronic Plastics, Inc., a private Canadian company.

Trash War

The Philippines announced Wednesday plans to ship tons of trash that it says was illegally dumped in Manila, back to Canada after years of waiting for something to be done.

Philippine President Rodrigo Duterte ordered his government to hire a private shipping company to take 69 containers of trash back. “The government of the Philippines will shoulder all expenses. And we do not mind,” said Presidential spokesperson Salvador Panelo.

“If Canada will not accept their trash, we will leave the same within its territorial waters or 12 nautical miles out to sea from the baseline of any of their country’s shores.”

“The president’s stance is as principled as it is uncompromising: The Philippines as an independent sovereign nation must not be treated as trash by other foreign nations. We hope this message resonates well with the other countries of the world.”

Between 2013 and 2014, the approximately 2,450 tons of trash was sent to the Philippines by Chronic Plastics Inc., a private Canadian company, under the guise of being recyclables. Once it arrived in Manila, inspectors found that the containers were filled with “non-recyclable plastics, household wastes, and adult diapers,” according to the Philippine News Agency.

Canada’s Response

After Duterte’s announcement, Canada’s Environment and Climate Change Minister Catherine McKenna said that the government had hired Bolloré Logistics Canada to remove the trash by the end of June.

McKenna also said that all the costs associated with the preparation, transfer, shipment, and disposal of the waste will be covered by the Canadian government.

As of now it is unclear which country’s plan will be implemented.

Past Moves

Over the years Canada and the Philippines have been in multiple talks to find a solution for the trash. Last month, Duterte threatened to go to war over the trash.

We’ll declare war against them,” Duterte said, “I will advise Canada that your garbage is on the way. Prepare a grand reception. Eat it if you want to.”

Check out our past coverage on the trash war.

Earlier this month, Canada missed a May 15th deadline to repatriate the trash and the Philippines removed top diplomats from the country. This trash issue is not the only conflict the two countries have had. Last year the Philippines canceled a multimillion-dollar agreement for 16 helicopters after Canada questioned their intended use.

See what others are saying: (Washington Post) (CBC) (CNN Philippines)

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