Why Australia & Canada Declined Hosting Commonwealth Games Sample

Introduction : Commonwealth Games: A Celebration of Unity, Equality, and Sportsmanship

Commonwealth games are competition which held between countries which has been included in families of commonwealth. There are 56 countries in world which participant and conduct commonwealth games in every fourth year. It has been conducted since 1930 with the aim to promote unity within British Empire. It is conducted with main idea of spreading unity, equality, destiny and humanity within countries. These games took place in every four year since 1930 except in 1942 and 1946 because of World War 2. There are various changes which have been brought in name of commonwealth. From year 1930 to 1950, commonwealth games were recognized as British Empire games which changes to British Empire and commonwealth games till 1966. In year 1970, name of game was changed to British Commonwealth which from 1978 was declared as commonwealth games (Burnett, 2021). This commonwealth competition is held between the 8 countries of each continent including Asia, Americas, Europe, Pacific, Caribbean and Africa. Commonwealth committee aims at promoting democracy in countries and focuses on carrying out fair operations in countries.

It also focuses on providing all human rights to citizens of countries and aim at storing international security and peace. To become part of common wealth, countries should follow some of specific values and guidelines. In November 2007, meeting has been held in Uganda in which eligibility criteria have been defined for countries to become part of commonwealth. Candidate countries should have constitutional alliance in past with existing members of commonwealth. 1971 Declaration of commonwealth principles should be accepted and followed by applicant members (Declaration of Commonwealth Principles, 1971). Selection of host countries and management of working of commonwealth games has been arranged by Commonwealth Games Federations (CGF). To promote inclusion of all individuals in games, commonwealth Paraplegic Games has been introduced after 1974. For supporting children s ability in playing games, Commonwealth Youth games has been started form 1990 which aim at conducting competition between the children of age 14 to 18. This will help in motivating them to enhance their skills in this field and help in overall development of children.

The History and Challenges of the Commonwealth and Commonwealth Games

The history of commonwealth is associated with the British Empire which is reason behind many countries left the common wealth. During the colonialism period games were conducted between the countries which are the colonies of British Empire. Many countries after becoming independents left the game to show their no attachment with British Empire. In 1926 Australia, India, Canada, Africa was ready to become part of commonwealth on the condition that all the nations will be provided with equal right and status. A conference was held in London in the proposal were accepted by commonwealth committee and rules were made which include that no country will be suppress any other country (Bakos, 2020). Canadian do not prefer monarchy in their country as they aim at providing equal rights to every citizen and believe in electing their own representative. At initial level there was monarchy system in the commonwealth which decreases the motivation level of Canadian to become part of the committee. Later on in 1949, commonwealth was declares as the free association of the countries and the head was determined by fair voting.

Sometime people regard commonwealth game as multisport events which held within various countries. But it has identified that there are various difference in both events as this events were seen to promote friendly and peaceful games. The biggest difference between such events is that delegation form Olympics has not been provided for the association participating in games. The location for commonwealth games is determined by bidding process in which the country who wins the bids is given rights to held commonwealth game in particular year. After the successful completion of commonwealth games in year 2018 in Australia. The country bids highest for conducting commonwealth games in year 2026. Events have been conducted for 5 times in Australia and it helps improving economic condition for country. In year 2030 Canada was supposed to conduct commonwealth games which will be 26Th events (Carlini et al, 2020). For conducting such events countries needs to incur high cost which restrict some countries to conduct such events. These easy will describes all potential reasons because of which both countries have withdrawn their support in conducting commonwealth games.

This essay will include various importance and reasons for which countries bids high amount to conduct commonwealth games. This will include all potential benefits and advantages on their economic from conducting such big events. This essay will also include variety of problems and issues which countries are facing in conducting commonwealth games. This essay is based on various reasons and issue because of which both countries withdrew their names from conducting common wealth. This will also include the past experience of Birmingham in conducting 2022 commonwealth games and its impact on country. These essays will also discussion on point of view of various states in Australia and Canada regarding conducing commonwealth games. This essay will also include critical analysis on the thought process of both countries as correct or not.

Economic and Financial Challenges in Hosting the Commonwealth Games

According to de Ruyter et al, (2021) conducting commonwealth games in countries can leads to increase cost and impact on budget of countries. However, countries still bids high amount to regulate such events because of all potential benefits which could be derived from events. The Kuhn et al, (2021) has declared that conducting commonwealth game by countries helps in improving their economic condition. Commonwealth games help in attracting more tourists to country as citizen come from their respective countries to support their athletes. This will help in improving the tourist and travel of countries leading to improving economic condition. There is increase in need for workers and employees which can organize and carry out all functions of games in appropriate manner. This will lead to reduction in rate of unemployed people in country as local workers will be hired by organization. This will eventually help in improving GDP of country. For example: In 2010, commonwealth games have been conducted in India which helps in generating employment opportunities for over 2.47 million people. The country was able to make profits of $4.94 billion in that year which help in improving their economic. In 2022, commonwealth games were held in Birmingham which helps in adding £870 million to UK economy that include 100 pounds million as profit for country.

On the other hand MacIntosh, Kinoshita and Sotiriadou, (2020) described that there are various reasons because of which countries are less motivated to conduct such events. The biggest problem that country faces is the unavailability of appropriate land on which all these activities could be carried out. Rents of land have been increasing day by day which lead to increase in cost of events. This makes it difficult for countries to manage their budgets and carrying out events in profitable manner.

Martill, (2020) has also described that with economic benefits there are various infrastructural benefit which have also been enjoyed by country. Government incurs cost in improving infrastructure of country which will help in attracting more tourists to country. This will help in enhancing the areas of market in the country which will help in improving profitability of organization. In Birmingham, new aquatic centre has been development in sand well, Alexander stadium has been redeveloped and new train station has been constructed. This will help in attracting more tourists toward country and helps in improving economic condition for country in long term. Development of new train station will help in improving transportation within countries which will help in enhancing the areas of operations for organization.

According to author for conducting such big event it requires high amount of financial, physical and human resources available in the organization. Financial resources is required which will help in maintaining and incurring all the expenses of organization. Physical resources will be required to conduct various games as there is need to acquire different equipments for carrying out particular games (Pillai et al, 2023). Country need to made arrangement regarding venues to carry out the events without hampering the working of other citizen. For conducting such events there is high need for availability of all type of field and stadiums in countries. Arrangement needs to be made for stay of the athletes and fulfilling their needs. For arranging all these within countries it requires high amount of investment. The country need to identify various sources form where funds could be raise easily and economically. Human resources will includes availability of efficient and effective employees which will manage the working of all games and helps in coordinating with other for effective accomplishing of all objectives.

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In year 2022, commonwealth games were organized in Birmingham which includes the cost of £778 million for country. It has been identified that country manages to earn £100m as their profits. Events were conducted at West Midlands and Birmingham venues from 28 July to 8 August 2022. These were various messages and benefits which were delivered before the beginning of the commonwealth. The Country was expecting that these events will help in creating job opportunities for 35000 people (Impact of common wealth game in Birmingham, 2023). This Event was aiming at becoming first carbon neutral program which will help in protecting environment. Among total cost country is aiming at investing £350 million for development of business of UK and £23.9 million will be invested for developing tourism program within countries. Various community projects were conducted during this event for promoting humanity within counties; BBC has invested £6m pound for carrying out program. The country was expecting to earn high profits and was estimating for higher economic development in country. The expectation and reality after conducting commonwealth did not match as forecasted. There were various political, economical and social crisis arise in country after completion of common wealth. It has been identified form the report various economist advice government regarding not to carry out such events and focus on existing issue in the country (Scott, 2020). This will help in identifying solution for current issues and helps in improving economic condition of the UK. However government estimates this event to be one of most beneficial for improving overall condition and performance of country.

The Financial Impact of Hosting the Commonwealth Games: Lessons from Birmingham and Victoria

According to Morgan, Bush and McGee, (2021) the country is facing huge losses from conducting commonwealth in 2018. It has been identified that before conducting commonwealth the country was faced with an issue to clear the outstanding bills of £760 m. As the country was expecting to invest in commonwealth they stop all funding for clearing existing bills. Birmingham authority was already facing an issue of 87 million pound in their budget which requires the investment of 100 million pound by the government to fix this. In 2018 government in Birmingham divert their focus from above issues and focused towards conducting commonwealth games. There were estimating that benefit form such events will lead to overcoming all issues however the reality did not coordinate with expectation. In 2019, Mr. Caller was appointed by the country with an aim that he could find solution to carry out countries from these issues. He identified that countries capacity in managing managerial and political aspects are not efficient and on the top of it they focus on carrying out such event was country s big mistake.

Various economists felt that conducting commonwealths at the time when country is facing such big financial crisis was not a good option. In 2019 authority is Birmingham focused on finding measures to resolve all financial crises in country (Pavlidis, Kennelly and Castro, 2020). However in the end of 2019, Corona Virus-19 arise which impact the economy of whole world. This made it more difficult for authorities to stabilize economic and financial condition within Birmingham. On 5th September 20123, section 114 has been provided by council of country which shows the incapability of the country in balancing its balance sheets. This show feebleness of country in paying all its bills and country was declared as bankrupt. This indicates that conducting commonwealth games in Birmingham was root cause behind facing financial crisis in country which ends up with declaring country as bankrupt.

With deciding the location for carrying out commonwealth games in 2022, the bidding for 2026 was also held in 2018. Victoria, Australia has won the biding process and was supposed to conduct 2026 commonwealth games. Australia was estimating the cost to be in there control and determined that the benefits form conducting such events will help in improving economic condition of country. In 2018, Australia was having good economic and financial condition and their economy has been expanded by 1.9% in 2018 (Official Reasons for declining to host the Commonwealth Games 2026, 2023). This made country gaining confidence in conducting such big events and incurring high amount of investment for common wealth. On 18 July 2023, authority of Victoria State of Australia has cancelled their proposal for conducting commonwealth games. This decision lead to increase in disappointment level of fans as the commonwealth games association as decided to conduct events in 2027. There are various economic and financial reasons because of which the country has denied to organize such events. According to Naidoo and Grevemberg, (2022) the main cause behind this decision was increase in the cost of conducting events by more than twice time that was accepted. Australian government has estimated that countries will incur the cost of Australian dolor 2.4 billion. Authority of Victoria State was ready to invest this amount which will help in boosting economical and financial condition of state.

However, while determining actual cost it was amounted to Australian $ 7 billion which is 4.77billion more than estimated budget. The authority did not recognize it beneficial for investing such big amount for 12 day tournament. That became the major reason behind cancellation of conducting commonwealth in Victoria. According to Oleinikova, (2023) authorities in Victoria have tried every possible action before declaring their cancellation. The government claims that they have even tried to change the location which can helpful in reducing budget. However the country is unable to identifying options that could reduce the cost to their acceptable criteria which make them taking this decision of not conducting commonwealth in their country. Commonwealth game authority claims that their estimation of the cost was to unique regional delivery model which are as supposed to use. The committee claims that they were not forced to used any such model which could cost that much and impact the budget of country. This made it difficult for committee to take decision regarding the management of 2026 event and which country could be able to conduct such events.

Same situation has been raised in Canada, which has cancelled its plan for conducting commonwealth games in 2030. In Feb. 2023 they declared that they are not going to conduct this event because of lack of government support to them. The government withdrawal their support due to high cost which the country needs to incur for carries out commonwealth games. The country identify that the actual cost will be too more than the estimated cost which will negatively impact economy and financial aspects of countries (Reasons for declining to host commonwealth games 2030, 2023). It has identified that company need to incur42.68 more than the actual budget that is difficult for Hamilton to incur. According to authority conducting this event will eventually lead to increasing in risk of tax payer that government doesn t want to do. Canadian government declares that there is in sufficient revenue form broadcasting team and other sponsors which is leading to incurring 93% of total cost by country. Incurring such high cost will ultimately lead to increase risk of tax payer and disturbs the economy of Canada.

According to author decision of Australia and Canada of not conducting commonwealth is correct as from the case of Birmingham it could be understand that country s budget and economic issues should be address first. Both the country is facing the issue of incurring high cost in 12 day game tournament which will have negative impact on economy of countries. It has been identified that to recover cost the country need to increase tax rate which will led to making all essential goods and services expensive for citizen.

According to author their decision was not appropriate as country could have more scope for development and can lead to increase in economic condition. From the previous data it has been identified that in 2018, Australia was able to gain huge amount of profits which amount to $2.5 billion. From this evaluation they could be attracted and invest in conducting commonwealth in countries (Osmond, Phillips and Harvey, 2022). This will help in improving infrastructure of country, providing more scope for employment and lead to improving economic condition of countries. They have also claimed that commonwealth was not reason for Birmingham to become bankrupt as the country was already facing various political and economic crises which they have ignored. Both this countries are not having any crisis at present time so the countries are having capability for conducting event.

CONCLUSION

It has been concluded form the essay that economic and financial condition of country should be evaluated before deciding on large expenses. Commonwealth games has been started in 1930 and conducted after every fourth year. It has been identified that it has been conducted to promote humanity, democracy, destiny and equality within the countries which part of the commonwealth families. It has been identified that there are total 56 countries which have become part of commonwealth by fulfilling the eligibility criteria determined by countries. It has been identified that countries should be accepted and followed all the rules and regulation mentioned in 1971 Declaration of commonwealth principles for became part of community. Decolonization of British Empire gives rise to commonwealth which pays emphasis on the promoting equality and justice within countries. It has been identified that name commonwealth was come after many changes which starts form British Empire games. But as the time changes and colonies were completely demolish name of the games were changed to commonwealth as various colonies which later became independent were not ready to became part of British empire. It has been identified that common wreath games association has been formed which regulates the working of commonwealth and decide upon various policies and strategies for its working.

Through this easy it has been identified that countries prefers to conduct such big and high budgeted events because of various benefits associate with the events. It has been identified this events lead to increase in employment opportunities for local workers in the country. People come from various cites to support their country which help in increasing the number of tourist in the country which helps in increase the incomes. It has also identified that increase in number of tourist in country will lead to improve profitability of various other industry such as hospitality. It has been identified that government incur high amount in improving infrastructure of countries which help in attaining overall development of countries.

Form the essay it has been concluded that economic condition of the countries play an important role in conducting such high budgeted event. In 2022, commonwealth games were held in Birmingham with the aim of improving the economic condition in the country. The reality did not match up with the expected outcome as in 2023 the countries end up becoming bankrupt. Commonwealth was recognized as main reason behind this act as the country was no financially stable when they conduct this event. It has been identified from various economist that authority ignores all current issues which were prevailing in the country and only focus on the successful accomplishment of commonwealth games. It has been identified that this ignorance id the crucial reason behind establishment of section 114 in the country.

It has been concluded that Decision of Australia and Canada government regarding not conducting commonwealth was appropriate for their economy. It has been identified that Australia was supposed to conduct commonwealth games in 2026 but the cost for carrying out events was £4.77 billion more than what has estimated. This made them canceling their proposal for conducting commonwealth games. It has been identified that Canada is also facing the same issues which is reason for cancelling their contract. It has been identified that countries has taken this decision with the view of not increasing tax risk of the citizen. It has been identified that future of commonwealth games are seen to be in danger as countries do not wish to incur high cost. Various countries have withdrawn their support from conducting commonwealth which leads to estimation that 2022 was last commonwealth games which had been held.

References

Books and Journals

• Bakos, A., 2020. The institutionalisation of sustainability in event management: A case study of the diffusion of ISO 20121 at the Gold Coast 2018 Commonwealth Games. Bond University.
• Burnett, C., 2021. Globalized Sport and Development from a Commonwealth Perspective. The Palgrave Handbook of Globalization and Sport, pp.479-501.
• Carlini, J., Coghlan, A., Thomson, A. and O'Neil, A., 2020. From legacy rhetoric to business benefits: A case study of the Gold Coast 2018 Commonwealth Games. Event Management, 24(1), pp.75-96.
• de Ruyter, A., Hearne, D., Beer, J. and Zaman, Y., 2021. Brexit, Birmingham and the 2022 Commonwealth Games: an opportunity for regeneration and rejuvenation?. Managing Sport and Leisure, 26(5), pp.413-428.
• Kuhn, T., Jayaratne, R., Thai, P.K., Christensen, B., Liu, X., Dunbabin, M., Lamont, R., Zing, I., Wainwright, D., Witte, C. and Neale, D., 2021. Air quality during and after the Commonwealth Games 2018 in Australia: Multiple benefits of monitoring. Journal of Aerosol Science, 152, p.105707.
• MacIntosh, E., Kinoshita, K. and Sotiriadou, P., 2020. The effects of the 2018 Commonwealth Games service environment on athlete satisfaction and performance: A transformative service research approach. Journal of Sport Management, 34(4), pp.316-328.
• Martill, B., 2020. Shadows of the Empire: Hard Brexit, Commonwealth Revival, and UK-Canada Relations. Balsillie Papers, 3(3), pp.1-10.
• Morgan, H., Bush, A. and McGee, D., 2021. The contribution of sport to the sustainable development goals: insights from commonwealth games associations. Journal of sport for development, 9(2), p.14.
• Naidoo, U. and Grevemberg, D., 2022. The role of athlete commissions in addressing sport-related human rights abuses: a case study of the Commonwealth Games Federation Athletes Advisory Commission. The International Sports Law Journal, 22(2), pp.180-185.
• Oleinikova, O., 2023. Czech Migrants Making a Home in Australia. In New Eastern European Migration to Australia: From Czech Republic, Hungary and Ukraine to Sydney and beyond (pp. 79-102). Cham: Springer International Publishing.
• Osmond, G., Phillips, M.G. and Harvey, A., 2022. Fighting Colonialism: Olympic Boxing and Australian Race Relations. Journal of Olympic Studies, 3(1), pp.72-95.
• Pavlidis, A., Kennelly, M. and Castro, L.R., 2020. White women smiling? Media representations of women at the 2018 Commonwealth Games. Sociology of sport journal, 37(1), pp.36-46.
• Pillai, J.K., Chari, B., Hegde, G., Chapman, P., Halls, M. and Botchu, R., 2023. Imaging in international sporting event: experience from the Birmingham Commonwealth Games 2022. Clinical Radiology, 78(6), pp.e477-e485.
• Scott, P.F., 2020. Passports, the right to travel, and national security in the Commonwealth. International & Comparative Law Quarterly, 69(2), pp.365-395.
• Online
• Declaration of Commonwealth Principles, 1971. 2023. [Online] available through :< https://thecommonwealth.org/declaration-commonwealth-principles-1971#:~:text=The%20Commonwealth%20of%20Nations%20is,international%20understanding%20and%20world%20peace.>
• Official Reasons for declining to host the Commonwealth Games 2026. 2023. [Online] available through:< https://www.bbc.co.uk/news/world-australia-66229574>
• Reasons for declining to host commonwealth games 2030. 2023. [Online] available through :<
• https://www.insidethegames.biz/articles/1133764/hamilton-2030-bid-all-but-over >
• Impact of commonwealth game in Birmingham. 2023. [Online] available through :< https://www.independent.co.uk/news/uk/home-news/birmingham-council-bankrupt-commonwealth-games-b2406968.html >