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The Economics of Mega-Events

Infrastructure Legacy: Metros and Airports

How mega-events can speed up useful infrastructure through fixed deadlines, and why the value depends on whether projects serve long-term needs.

The strongest case for mega-events is often infrastructure.

Deadlines as commitment

Fixed event dates can force governments to complete long-delayed projects, overcoming political gridlock.

Examples

  • Tokyo 1964: the Shinkansen bullet train opened just before the Games.
  • Delhi 2010: metro and airport expansion.
  • Beijing 2008: new metro lines and airport terminal.
  • London 2012: regeneration of east London.

Useful vs wasteful

  • Useful: transport and housing that serve residents for decades.
  • Wasteful: specialised venues with little future use.

Opportunity cost

The same infrastructure could often be built without the event, possibly more cheaply without deadline pressure. The question is whether the event was the only way to get it done.

Planning

Good hosts plan events around existing city needs, rather than building for the event alone.

The bullet train

Japan opened its first Shinkansen line nine days before the 1964 Tokyo Olympics, a lasting infrastructure legacy.

Thinking events are needed to build infrastructure

Infrastructure can be built without events, though deadlines can help.

Key takeaways
  • Mega-event deadlines can speed up infrastructure.
  • Tokyo's Shinkansen opened before the 1964 Games.
  • Transport and housing are useful legacies; unused venues aren't.
  • The opportunity cost question remains.
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