Was The World Cup Good For South Africa?

I remember back in 2007, during my trip to South Africa, hearing people talk about how excited they were for the 2010 World Cup. I read news articles discussing how the World Cup would revolutionize the South African economy. I listened to Shakira sing about "this time for Africa" —heck, I even learned the dance.

But now, just six weeks after the end of the month long tournament, South Africa is in economic disarray. Unions are on strike, demanding a raise in wages—teachers are not showing up to teach children and hospital staff are not showing up to tend to the sick.

People are dying.

Why is this happening? Were we wrong about the hope and financial prosperity of the World Cup? Are these events even related?

On August 18th, President Jacob Zuma addressed Parliament claiming the World Cup was a catalyst for development. In a moving speech, he stated "South Africa has demonstrated that it has the infrastructure and the capability to warrant serious investment consideration." He also stated that he wanted "education to be a lasting legacy of the World Cup...The tournament has ended, but the legacy must live on and inspire us and the way we work." (1)

However, eight days earlier, on August 10th, the public sector began its largest union strike since 2007. By law, essential workers such as doctors and police officers are not allowed to strike, but discontented teachers and nurses have marched to parliament demanding an 8.6% wage increase, and a housing allowance of R1,000 (US$137) per month. The government responded with a 7% raise and R700 ($96) a month for housing. This offer was rejected, and the strike is now entering its third week.

As time has progressed, the strike has escalated from a peaceful march to Parliament to violence in the streets requiring water cannons and rubber bullets to contain it.

Here is a video clip:

Union workers believe their demands can be met, citing stories of the government spending huge amounts of money on World Cup tickets for their senior managers, and on five-star accommodation for government ministers. Jacob Zuma is rumored to earn more than 2.2m rand [about $300,000] much to the horror of protesters. (2)

An article written August 26th reports that unions are threatening to shut down the economy completely. The emergency services' unions have given a seven-day notice indicating that they will join the national strike on Thursday if salary demands are not met. The private sector has also begun threatening to back public demands. (3)

Economist Kevin Ling said "The timing of the strike is problematic, considering the World Cup created such a good impression to potential investors. These hopes would be surely dashed." (4)

And Ling was right--the 3.2% gross domestic product (GDP) growth figure for the quarter ended June, released by Statistics South Africa (Stats SA) on Tuesday, was lower than expected, given that a significant part of the World Cup took place on South African soil during the period. (5)

Not only is the upset dismantling the economic aspirations inspired by the World Cup, but it is affecting its pledge to education as well. The closing of schools due to the strike is disrupting grade 12 learners who are studying to take their matric tests in less than two weeks. Now, in addition to the month long break taken during the World Cup, students are losing time in the classroom because no one is showing up to teach. (6)

The school closures and teachers strikes are having profound effects on These Numbers Have Faces as well. We are in the middle of recruiting season for our 2011 scholars, but our progress is contingent on finalized matric results from 12th grade students.

If students are unable to complete grade 12, they are unable to apply for the TNHF scholarship. This means there is a possibility of fewer students in our program than expected for next year.

On another note, there is the issue of what to do with the stadiums built for the purposes of the World Cup. South Africa's most lucrative sport is rugby, but only now are the needs of the sport being discussed. It is possible the sport is not compatible with the stadiums, hindering the country’s ability to maintain and run the facility, much less make a profit. (7)

Ok, now is your chance to exhale. (I know I was holding my breath at least.) It seems like since the World Cup, South Africa keeps getting hit with more and more bad news. It raises questions. Was South Africa ready for the responsibility of hosting the World Cup? Should the country have tended to the needs of its citizens before taking on a challenge of this magnitude? Do you think the World Cup made South Africa appear more stable than it actually is?

And, perhaps most importantly, in light of recent events, was the positive PR brought by the World Cup good or bad for the nation of South Africa?

Let us know what you think.

Cited Websites:

(1) http://www.politicsweb.co.za/politicsweb/view/politicsweb/en/page71656?oid=193978&sn=Detail&pid=71616

(2) http://www.bbc.co.uk/news/world-africa-10928321

(3) http://www.news24.com/SouthAfrica/News/Unions-plan-to-shutdown-economy20100826

(4) www.allafrica.com

(5) http://www.engineeringnews.co.za/article/south-africas-economic-growth-slows-to-32-in-q2-2010-08-24

(6) http://school-staff-issues.suite101.com/article.cfm/south-african-education-strike

(7) http://www.google.com/hostednews/afp/article/ALeqM5jknmHrVB6m9ujPFj-9MyC8WN7U-Q

Photo and Video Links: 

http://momento24.com/en/2009/07/08/south-africa-strike-hits-stadium-work/

http://www.cnn.com/2010/SPORT/football/06/06/football.world.cup.zuma/index.html 

http://clipsyndicate.com/video/playlist/8178/1649239?wpid=8989

http://www.flickr.com/photos/28425498@N00/3768809939/

http://www.sportable.com/2009/07/08/dont-buy-that-vuvuzela-stock-yet/