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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.

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Egypt Seizes Ship That Blocked Suez Canal Until Owners Pay Nearly $1 Billion

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  • Egyptian authorities seized the Ever Given, a mega-ship that blocked the Suez Canal for nearly a week last month, after a judge ruled Wednesday that the owners must pay $900 million in damages.
  • The ship was seized just as it was deemed fit to return to sea after undergoing repairs in the Great Bitter Lake, which sits in the middle of the Suez Canal.
  • The vessel’s owners said little about the verdict, but insurance companies covering the ship pushed back against the $900 million price tag, saying it’s far too much for any damage the ship actually caused.

Ever Given Still in Egypt

An Egyptian court blocked the mega-ship known as the Ever Given from leaving the country Wednesday morning unless its owner pays nearly $1 billion in compensation for damages it caused after blocking the Suez Canal for nearly a week last month.

The Ever Given’s ordeal started when it slammed into the side of the canal and became lodged, which caused billions of dollars worth of goods to be held up on both sides of the canal while crews worked round the clock to free the vessel. An Egyptian judge found that the Ever Given becoming stuck caused not only physical damage to the canal that needed to be paid for but also “reputational” damage to Egypt and the Suez Canal Authority.

The ship’s Japanese owner, Shoei Kisen Kaisha, will need to pay $900 million to free the ship and the cargo it held, both of which were seized by authorities after the ship was transported to the Great Bitter Lake in the middle of the canal to undergo now-finished repairs. Shoei Kisen Kaisha doesn’t seem to want to fight the judgment in court just yet. It released a short statement after the ruling, saying that lawyers and insurance companies were working on the claims but refused to comment further.

Pushing Back Against The Claim

While Shoei Kisen Kaisha put in a claim with insurers, those insurance companies aren’t keen on just paying the bill. One of the ship’s insurers, UKP&I, challenged the basis of the $900 million claim, writing in a press release, “The [Suez Canal Authority] has not provided a detailed justification for this extraordinarily large claim, which includes a $300 million claim for a ‘salvage bonus’ and a $300 million claim for ‘loss of reputation.’”

“The grounding resulted in no pollution and no reported injuries. The vessel was re-floated after six days and the Suez Canal promptly resumed their commercial operations.”

It went on to add that the $900 million verdict doesn’t even include payments to the crews that worked to free the ship, meaning that the total price tag of the event could likely be far more for Shoei Kisen Kaisha and the multiple insurance companies it works with.

See what others are saying: (Financial Times) (CNN) (The Telegraph)

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Treated Radioactive Water From Japanese Nuclear Power Plant Will Be Released Into Ocean

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  • The Japanese government confirmed Tuesday that it will officially move forward with plans to dump millions of gallons of radioactive water from the Fukushima nuclear power plant into the ocean.
  • The government spent a decade decontaminating the water, only leaving a naturally occurring isotope in it that scientists recognize as safe for people and the environment.
  • Despite the safety claims, protesters took to the streets in Tokyo to show disapproval of the decision. Local business owners, in particular, have expressed fears that more municipalities worldwide could ban Fukushima products, including fish, because of distrust in the water.
  • Meanwhile, officials have insisted that the dump is necessary as the water takes up a massive amount of space, which is needed to store highly radioactive fuel rods from the remaining cores at the now-defunct nuclear facility.

Editor’s Note: The Japanese government has asked Western outlets to adhere to Japanese naming conventions. To that end, Japanese names will be written as Family Name followed by Given Name.

Radioactive or Bad Publicity?

After years of discussions and debate, the Japanese government announced Tuesday that it will dump radioactive water from the Fukushima nuclear power plant into the ocean.

Government officials consider the move necessary, but it’s facing backlash from local businesses, particularly fisheries, over potential consequences it could have. Many are especially concerned that the decision will create bad press for the region as headlines about it emerge. For instance, a headline from the Guardian on the issue reads, “Japan announces it will dump contaminated water into sea.”

While the water is contaminated and radioactive, it’s not nearly what the headlines make it out to be. The government has spent the last decade decontaminating it, and now it only contains a trace amount of the isotope tritium. That isotope is common in nature and is already found in trace amounts in groundwater throughout the world. Its radiation is so weak that it can’t pierce human skin, meaning one could only possibly get sick by ingesting more than that has ever been recorded.

According to the government, the decontaminated water at Fukushima will be diluted to 1/7 of the WHO’s acceptable radiation levels for drinking water before being released into the ocean over two years.

Something Had To Eventually Be Done

Over the last decade, Japan has proposed this plan and other similar ones, such as evaporating the water, which the International Atomic Energy Agency said last year met global standards.

The water has been sitting in containers for years, so why is there a push to remove it now? Space and leakage seem to be the primary reasons.

The water containers are slowly being filled by groundwater, and the government expects to run out of space relatively soon. Space is sorely needed, as Prime Minister Suga Yoshihide has pointed out in the past that the government wants to use the space to store damaged radioactive fuel rods that still need to be extracted from the plant. Unlike the water, those rods are dangerously radioactive and need proper storage.

Regardless, Suga reportedly recognizes that removing the water is going to end up as a lose-lose situation.

“It is inevitable that there would be reputational damage regardless of how the water will be disposed of, whether into the sea or into the air,” he said at a press conference last week. As expected, the government’s decision did trigger backlash, prompting many demonstrators to take to the streets of Tokyo Tuesday in protest.

To this day, eleven countries and regions still ban many products from the Fukushima prefecture despite massive clean-up efforts that have seen people returning to the area to live.

See what others are saying: (NPR) (KBS World) (NBC News)

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Greta Thunberg To Skip U.N. Climate Change Conference, Citing Vaccine Inequality

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  • Young environmental activist Greta Thunberg will not attend the U.N.’s climate change conference set to take place in Glasgow, Scotland this November.
  • “Inequality and climate injustice is already the heart of the climate crisis. If people can’t be vaccinated and travel to be represented equally that’s undemocratic and would worsen the problem,” the 18-year-old tweeted Friday, adding, “Vaccine nationalism won’t solve the pandemic. Global problems need global solutions.”
  • Since rollouts began late last year, 40% of vaccines have been administered in wealthy and Western countries, according to The Washington Post.
  • Scientists have warned that the longer the virus continues to circulate widely, the more chances it will have to change and potentially develop vaccine resistance.

Thunberg Points To Vaccine Inequality

Swedish climate activist Greta Thunberg has said she is skipping the UN’s climate change conference.

The COP26 summit is set to take place in Glasgow, Scotland in November, but 18-year-old Thunberg told BBC she won’t attend because she’s concerned about the impact COVID-19 will have on attendance.

In a Twitter thread Friday, she responded to a headline about her plans to miss the summit.

“Of course I would love to attend…But not unless everyone can take part on the same terms. Right now many countries are vaccinating healthy young people, often at the expense of risk groups and front line workers (mainly from global south, as usual…),” she wrote.

“Inequality and climate injustice is already the heart of the climate crisis. If people can’t be vaccinated and travel to be represented equally that’s undemocratic and would worsen the problem.”

“Vaccine nationalism won’t solve the pandemic. Global problems need global solutions,” the teen continued.

Thunberg went on to say that if the summit is delayed, it doesn’t mean urgent action should too.

“We don’t have to wait for conferences nor anyone or anything else to dramatically start reducing our emissions. Solidarity and action can start today,” she added before noting that digital alternatives for the conference would also be insufficient.

“High speed internet connection and access to computers is extremely unequal in the world. In that case we would lack representation from those whose voices need to be heard the most when it comes to the climate crisis,” she wrote.

Data on Global Vaccine Distribution Efforts

According to The Washington Post, nearly 20% of people in the United States are now vaccinated, but many other countries are unlikely to hit that same metric by the end of the year, even with international assistance through the Covax program.

Current projections predict it could be years before developing countries distribute enough doses to come close to herd immunity, which scientists say requires inoculating around 70-80% of a population.

Since rollouts began late last year, enough shots have been distributed to fully vaccinate about 5% of the world’s population, but The Post reported that the vast majority have been administered in wealthy and Western countries.

Around 40% of vaccines have been given in 27 wealthy nations that include only 11% of the world’s population, according to the Bloomberg Vaccine Tracker.

That’s pretty concerning because scientists also warn that the longer the virus continues to circulate widely, the more chances it will have to change and potentially develop vaccine resistance.

Thunberg’s comments are a blow for U.K. organizers, who have already postponed the conference once from last November because of the pandemic. Even now, there has been speculation that it could be delayed again this year.

Thunberg would not play a formal role at the conference but her decision not to attend is a significant symbolic moment.

At COP25, the young climate change activist gave a headline speech and she typically attends major climate events of this nature. On top of that, reports say this summit was slated to be one of the most consequential climate conferences since the 2015 Paris accord.

On the agenda for this year’s conference discussions were country-level plans for cutting carbon emissions, along with progress on the Paris agreement and the U.N. Framework Convention on Climate Change.

See what others are saying: (Insider) (CNBC) (The Washington Post)

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