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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

Tunisian President Fires Prime Minister, Suspends Parliament Over Deadlock and COVID-19 Response

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President Kais Saied claims his actions are constitutional and have the support of the military, which has already blocked off government buildings. His opponents, however, call the move little more than a coup.


President Makes Massive Changes to Government

Tunisia’s government received a major shakeup after President Kais Saied fired the Prime Minister and froze parliament late Sunday.

The move, according to Saied, was meant to break years of parliamentary deadlock between Prime Minister Hichem Mechichi and various political parties that have sturggled to find common ground. However, the timing comes just after a massive protest over how the government has handled the COVID-19 pandemic turned violent earlier on Sunday.

Either way, the move risks sparking a confrontation between Saied —who is backed by the army — and various political parties that view his actions as a coup.

The President’s actions have proven cotnroversial. Despite that, he has widepsread support after being elected in 2019 on a platform to fight corrupt politicians.

After the announcement, tens of thousands have taken to the streets in support of his decision to dismiss the Prime Minister and parliament, with many cheering as he appeared among the crowd Sunday night.

In recent months, anger at the ruling government has only increased as many feel the ruling coalition, largely made up of the Islamist Ennahda (“Renaissance”) party, have been ineffective.

It’s a common belief in Tunisia that Ennahda’s rule, alongside its tenuous coalition, helped exacerbate problems caused by the COVID-19 pandemic, which led to the economy shrinking by 8% as tourism plummeted.

One of the President’s supporters told Reuters and other outlets during Sunday’s demonstration, “We are here to protect Tunisia. We have seen all the tragedies under the rule of the Muslim Brotherhood.”

He mentioned the Muslim Brotherhood, which had a strong presence in Egpyt after the Arab Spring, becuase Ennahda has longstanding relationship with the group, although it has sought to distance itself as a more moderate political group over the last few years.

Now, for their part, the ruling coalition has argued that Saied’s move is clearly unconstitutional. Rached Ghannouchi, leade of Ennahda and Parliamentary Speaker, said that he is “against gathering all powers in the hands of one person.” His position isn’t without supporters eithers. Both sides have already gathered throughout the capital and have thrown rocks at each other.

Legalities of Article 80

The question across many minds is whether or not Saied’s actions are actually constitutional.

He claims that under Article 80 of the constitution, he can fire the Prime Minister, suspend parliament for 30 days, and appoint a premier to rule — all of which is true.

However, in order to do that, the Prime Minister and the Parliamentary Speaker need to be consulted; something Parliamentary Speaker Ghannouchi said was never done. It’s unclear what Mechichi’s position is as he’s stayed inside his home all day, though the army says he is not under any kind of arrest.

In addition to those requirements, a Constitutional Court needs to approve the move, and one hasn’t been set up. As the German Foregin Office put it on Monday morning, it seems like Saied is relying on “a rather broad interpretation of the constitution.”

International observers hope a solution will soon be made to keep what seems to be the last functional democracy to come from the Arab Spring from devolving into civil war or dictatorship.

See what others are saying: (The Washington Post) (Reuters) (BBC)

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International

South Korean President Makes BTS Official Presidential Envoys

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The position is largely ceremonial but will be used by the government to help give a friendly and popular face to national and international initiatives spearheaded by Seoul.


Government Recognition

The K-pop band BTS will be adding to its list of global impacts this year after South Korean President Moon Jae-in appointed its members as Presidential Envoys on Wednesday.

The role will include attending international conferences such as the United Nations General Assembly in September.

At these events, BTS will perform “various activities to promote international cooperation in solving global challenges, such as improving the environment, eliminating poverty and inequality, and respecting diversity,” according to Park Kyung-mee, a Blue House spokesperson.

The band has already appeared at U.N. conferences multiple times over the last few years.

Just last year, the group gave a message of hope and reassurance through the U.N. during the COVID-19 pandemic. Prior appearances at the U.N. have been either as part of U.N. organizations or as private citizens.

Wednesday’s appointment will make them official representatives of South Korea, although they won’t actually engage in any direct diplomacy and instead will be used to promote the country’s ongoing efforts in youth-related projects.

Longstanding Policy

BTS’ success, alongside prior and current K-pop groups, has remained a masterclass of soft diplomacy by the Korean government. For decades, the Korean government has cultivated promoting cultural aspects abroad in the hopes of generating more interest in the country. There are hopes that such efforts will encourage more tourism as well as an elevated image when consumers consider Korean-made products.

Such efforts, beyond cultivating K-pop and raising its stars as semi-official government symbols, also include helping fund Korean restaurants abroad as well as free Korean-language classes taught by Professors of some of Korea’s most prestigious schools.

The news comes as BTS’ newest single, “Permission to Dance,” quickly took the #1 spot on the Billboard top 100. BTS is also partnering with YouTube to promote a Permission to Dance challenge on YouTube Shorts that will begin tomorrow and end on August 4.

Fans will be encouraged to replicate dance moves from the music video, and the group’s favorite clips will be put into a compilation made by them.

See what others are saying: (Yonhap News) (The Korea Times) (All Kpop)

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International

Over 1 Million Chinese Displaced After Record Rainfall

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The rain has created waist-high waters throughout the capital of China’s Henan province, drastically affecting the lives of its over 10 million inhabitants.


Trapped in a Flood

The Henan province of central China experienced severe rainfall over the last week that has left at least 25 dead and displaced more than 1.2 million people due to severe flooding, according to figures released by Chinese authorities Wednesday.

Meteorologists claim that the sudden, severe rainfall is caused by Typhoon In-Fa colliding with a high-pressure system over Henan province.

The floods have forced people to wade through waist-high water throughout Zhengzhou, the region’s capital. In one tragic incident Monday, 12 people died after they were trapped in the subway amid rising waters. A similar situation occurred Tuesday, causing multiple lines to be trapped in chest-high water for up to three hours before rescue workers managed to save them. Since then, metro authorities have shut down many of Zhengzhou’s rail lines.

Between Monday and Tuesday alone, Zhengzhou was hit with an estimated 25 inches of rain, equating to about 87% of its average annual rainfall. At one point, seven inches of rain occurred in less than an hour.

In an effort to alleviate rising waters, authorities breached a nearby dam to release floodwaters on Tuesday, although it’s unclear how much that helped as many dams and rivers in the region have overflowed for days.

Elsewhere in Henan, villages have been cut off by landslides and flooding, killing at least four others and leaving some areas without power for more than 24 hours.

Long Recovery Ahead

The region was finally able to begin recovery efforts Wednesday as conditions have begun to die down.

Despite reduced rainfall, the situation has still proven to be dire, leading President Xi Jinping to issue a statement through state media ordering authorities to give top priority to people’s safety and property.

In total, more than 17,000 firefighters have been mobilized for rescue efforts, as well as local volunteers and other rescue crews from other provinces.

Chinese companies have rushed to donate money to help the affected communities, and so far over $300 million has been donated.

It’s likely that for some time, hundreds of thousands in the region will be left without homes as authorities begin the work of ensuring that buildings are safe to return to.

See what others are saying: (South China Morning Post) (BBC) (The New York Times)

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