Monday, August 20, 2012

Was There An Economic Trickle-Down Effect of the London 2012 Olympics?

Economists say it may yet be too soon to tell, but will there ever be a real economic trickle-down effect of the London 2012 Olympic Games to the host city’s economically disadvantaged residents? 

By: Ringo Bones 

Ever since the modern Summer Olympic Games went commercial back in 1984, many a host city has been relieved of the insurmountable burden of debt after hosting the event. But have economists ever wondered – or even in their wildest dreams contemplated of doing a study - if there ever was a real economic trickle-down effect of hosting the Olympic Games to the host city’s most economically disadvantaged residents? 

As the London 2012 Olympics came and went, many of the world’s top economists have wondered whether Stratford East London had truly been economically reinvigorated by the recent event. The area has been recognized not only as London’s most ethnically diverse neighborhood but also the most economically least well-off. Yet, almost all of the under-35 population remains hopeful that the recent Olympic Games will eventually reinvigorate the small businesses of Stratford East London. 

But older residents who have witnessed first hand the Hugh Grant / Julia Roberts Notting Hill debacle fears that Stratford East London, and other economically least well-off parts of London, will experience the brunt of gentrification during the next few years. Almost all Brazilian immigrants who are former Notting Hill residents can no longer live there because they have been “gentrified out” by high property prices. Looks like the gentrification issue will make the unhealthy product sponsors McDonald’s, Heiniken and Coca Cola the more lasting economic issue of the London 2012 Olympics.  

1 comment:

VaneSSa said...

Isn't gentrification a social issue and not an economic issue? Nonetheless, I too wonder how many of the annual Notting Hill Carnival dancers / performers can still afford to actually live in Notting Hill because they are gentrified out of the old neighborhood. So too are the merchants who sell Tamil fish curry ingredients in Stratford East London.