Sport mega events in emerging economies the south american games of santiago 2014

3 Emerging Economies and Sport Mega-Events 25 4 The Context of the South American Games 51 6 Santiago 2014: Stakeholders’ Appraisement 103 7 Lessons and Challenges Facing Sport Meg

MEGA EVENT PLANNINGSeries Editor: Eva Kassens-Noor

Series Editor Eva Kassens-Noor Michigan State University East Lansing, MI, USA

disciplinary view into the planning for the world’s largest sporting, gious, cultural, and other transformative mega events Examples include the Olympic Games, Soccer World Cups, Rugby championships, the Commonwealth Games, the Hajj, the World Youth Day, World Expositions, and parades This series will critically discuss, analyze, and challenge the planning for these events in light of their legacies including the built envi-ronment, political structures, socio-economic systems, societal values, per-sonal attitudes, and cultures.

reli-More information about this series at

http://www.palgrave.com/gp/series/14808

Gonzalo A. Bravo • David J. Shonk

Jorge Silva- Bórquez Silvana González-Mesina

Sport Mega-Events in Emerging Economies

The South American Games of Santiago 2014

Mega Event Planning

ISBN 978-1-137-56887-8 ISBN 978-1-137-56888-5 (eBook)

https://doi.org/10.1057/978-1-137-56888-5

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Exercise and Sport Sciences

West Virginia University

We would like to thank everyone who made this project possible, larly those who assisted by providing invaluable information that was criti-cal to advancing this monograph Our sincere thanks to personnel from the National Institute of Sport, the Ministry of Sport, and the Corporación Santiago 2014 Specifically, thanks to Patricio Sepúlveda Novoa, Marcelo Ubal Rodriguez, Ximena Restrepo Gaviria, Marcos Antonio Colina Barahona, and Carlos Marchat Laplagne Similarly, we would like to thank

particu-Eva Kassens-Noor, editor of the Mega Event Planning Pivot series at

Palgrave for trusting our idea and encouraging us to pursue this graph Also thanks to Joshua Pitt, Senior Commissioner Editor at Palgrave Macmillan, for his patience in accepting our numerous requests for exten-sions Because some sections of this project required us to work in two languages, the editing process turned out to be extensive, lengthy, and at times monumental It required from us not only substantial editorial work, but also a good dose of idiomatic judgment Our sincere thanks to Gretchen Peterec, Paulina Bravo, and Steven Pope for reading and provid-ing numerous comments for the original as well as translated versions of the manuscript Any mistake that may have occurred as part of this process

mono-is solely our responsibility

3 Emerging Economies and Sport Mega-Events 25

4 The Context of the South American Games 51

6 Santiago 2014: Stakeholders’ Appraisement 103

7 Lessons and Challenges Facing Sport Mega- Events

in Emerging Economies: The Case of Santiago 2014 123

CONMEBOL South American Football Confederation

COSAN 2014 Corporación Santiago 2014

MERCOSUR Common Market of the South

OECD Organization for Economic Co-operation and

Development

notes

1 Note: Some of these acronyms are in their original language of Spanish or French.

Gonzalo A. Bravo is an Associate Professor in the Sport Management

Program at West Virginia University He completed a Masters in Sport Administration at Penn State University and a PhD in Sport & Exercise

Management at Ohio State University He is the co-editor of International Sport Management (2012) and Sport in Latin America Policy, organiza- tion, management (2016).

David  J.  Shonk is an Associate Professor in Sport & Recreation

Management at James Madison University He completed his uate degree in Business Management at Virginia Tech and holds a PhD in Sport & Exercise Management from Ohio State University He is the co-

undergrad-author of Managing Sport Events (2013).

Jorge Silva Bórquez is the Sport Director at the Pontificia Universidad

Católica de Chile Previously he worked at the National Institute of Sport and Club Deportivo Universidad Católica in Santiago, Chile He holds an MBA from IEDE Business School in Santiago and a Master’s degree in Sport Management from Universidad Metropolitana de Ciencias de la Educación

Silvana  González  Mesina is a freelance journalist specialized in sport

and corporate communications Her work has been published in major newspapers and sport publications in Chile She completed a Bachelor’s degree in Communication and Journalism from Universidad de Chile and

a specialization in Sport Journalism from Universidad La República

Fig 4.1 Percent of medals won by region—Pan American Games

1999–2015 Source: ‘Acta XXV’ (2012) and Toronto 2015 (n.d.) 60 Fig 5.1 COSAN organizational structure Source: Based on COSAN

Park in 2017 Note: Based on 60 hours of weekly use

Source: Parque Peñalolén IND (2017) 92 Image 5.1 Triathlon competition in Viña del Mar Reproduced with

permission of Agencia Uno and Instituto Nacional de

Deportes 94 Image 5.2 Track and Field at the National Stadium in Santiago

Reproduced with permission of Agencia Uno and Instituto

Fig 5.5 Total medals by country—Santiago 2014 Note: Venezuela

reached the third place because it won more gold medals

than Argentina Source: Based on COSAN (2014a) 95 Fig 5.6 Medals (percent by gender) obtained by Chilean Athletes—

Santiago 2014 Note: total number of medals obtained by

Chilean athletes = 129 Source: Pereira (2014) 96 Fig 6.1 Trend of media articles (March 6–19) 2014 South American

Games Source: Fundación Imagen de Chile, 2014 (p. 1)

Reproduced with permission of Fundación Imagen de Chile 106

Table 3.1 List of emerging economies ranked by different institutions in

2016 32 Table 3.2 First-, second-, and third-order SMEs hosted in emerging

© The Author(s) 2018

G A Bravo et al., Sport Mega-Events in Emerging Economies, Mega

Event Planning, https://doi.org/10.1057/978-1-137-56888-5_1

Introduction

Abstract Chile and the 2014 South American Games in Santiago provide

an interesting platform for exploring the case of a sport mega-event (SME)

in an emerging economy The chapter provides an introduction to the South American Games, describes the organization of the project, and explains the methodological approach used in this case study Although the vast majority of scholarly work on SMEs has focused on large and global scale events, this case focused on a small regional event that took place in a country with little history in organizing mega-events This chap-ter introduces the importance of studying lower scale SMEs and high-lights the need to explore the uniqueness of these types of events These events are frequently hosted in countries outside of the global north that show dissimilar economic, cultural, and institutional realities

Keywords South American Games • Emerging economy • Sport

mega-events

In 2009, when the International Olympic Committee (IOC) announced that the 2016 summer Olympic Games were to be organized in Rio de Janeiro, Brazil, the sporting world received the news with excitement and

at the same time were concerned about security, health issues, and being

McBride, 2016) Although sport mega-events (SMEs) like the summer Olympics traditionally take place in developed countries, over the past decade the IOC has started to award these events to countries outside of the Global North The rationale for moving these events outside of the traditional rim of developed nations is not only to advocate for participa-tory, democratic, and inclusive ideas, but also for very practical reasons.The awarding of the Olympic Games to emerging economies located in the Global South has occurred because over the last two decades many of the so-called developing nations have significantly changed their economic

to be traditional bidders for the Olympic Games are now considering a bid due to the enhanced status given to host cities, as was the case of the city

of Budapest who in 2015 announced intentions to bid for the 2024

SMEs like the Olympics and the FIFA World Cup are increasingly going

to new lands, such that there is a shift from developed democratic states to emerging democratic and non-democratic states Between the 2008 Beijing Olympic Games and the 2022 Qatar FIFA World Cup, at least eight major sport events will have taken place in ‘emerging states’ (p. 16)

In contrast, politicians from cities and nations considered more regular bidders have begun to question the benefits of SMEs, and enthusiasm for hosting has waned due to the large costs involved That was the case in

2016 when Rome’s mayor Virginia Raggi opposed the city’s bid for the

2024 Summer Olympics citing their lack of sustainability and large costs

Despite the interest emerging economies have shown in recent decades

to bid and host first-order SMEs, a select group of developed countries continue to host them because of their high costs As a result, many coun-tries today bid and host SMEs but focus more on a regional appeal as

Sport mega-events hosted in emerging economies, particularly second- and third-order events, occur much more frequently than reported These are the type of events that while retaining a number of the defining fea-

of participants, and their level of media reach is limited to specific

in existence for almost four decades, have grown from being a small

multisport festival involving a few hundred athletes to a complex venture that closely resembles the characteristics of a first-order SME.

Because of the importance SMEs receive in the scholarly literature, and the ubiquitous impact these events have on the countries that host them,

it is critical that scholars pay attention to and examine the dynamics of SMEs in emerging economies and particular events of second- and third- order category Although the interest of studying SMEs in emerging econ-omies has grown significantly since the Beijing Olympics in 2008, the vast majority of these studies has focused on first-order events hosted in BRICS countries such as Brazil, Russia, India, China, and South Africa Considering that not all emerging economies are alike, nor all SMEs simi-lar, scholars who examine business strategy in less-developed countries remind us that ‘emerging market economies are not homogeneous, even within the same geographic region Latin America, East Asia, Africa/Middle East, and Central and Eastern Europe, taken as four groups, have mani-festly different starting points, but even within these regions, countries

Therefore, it is important for scholars to focus on these differences and to

be aware of the uniqueness and peculiarities second- and third-order SMEs may offer, particularly when hosted outside of the BRICS economies

Chile and the South American Games of Santiago 2014 offer an esting case to examine and explore the defining attributes that characterize

inter-an event of sizeable magnitude in a country with little history of hosting SMEs This case aims to shed light and expand our understanding of not only the way a third-order SME like the South American Games occur but also under what circumstances they occur It also contributes to advance our knowledge as to what extent previous findings and conceptualizations made on impact, legacies, justifications, challenges, and problems, identi-fied in first-order SMEs hosted in developed nations, inform similar out-comes when compared to second- or third-order SMEs organized in emerging economies Similarly, case studies like the South American Games might also help to provide a better understanding if some of the challenges faced by first-order SMEs on BRICS economies translate or equate to other second- and third-order SMEs in smaller emerging econo-mies One of the key issues here is that future studies of SMEs in emerging economies must move away from the notion that ‘one-size fits all’ SMEs are extremely complex enterprises that require scrutiny and judicious anal-ysis of their findings prior to treating the findings as rules that will

unavoidably replicate other SMEs of different sizes that take place in similar economic, cultural, and institutional realities.

dis-This monograph is intended to help the reader understand the lenges that event organizers from emerging economies face when hosting

chal-or aspiring to host large spchal-orting events While the specific literature on SMEs is vast and rich, little has been written about the idiosyncratic nature

of hosting large international multisport sport events in emerging mies, particularly those outside the BRICS countries Academic efforts to understand how smaller emerging economies face the challenges of orga-nizing second- and third-order SMEs have been scarce at best This mono-graph focuses on describing how less visible yet large sport events like the South American Games are planned and take place in an emerging econ-omy like Chile

econo-In this monograph, we examined the case of Chile and explored some plausible reasons for Chile’s transformation from being a country that historically rescinded SMEs to becoming an aspiring host for these events Specifically, we examined the historical context and macro-environmental factors that may have contributed to explaining the adoption of SMEs by

examined the extent impacts, legacies, and different forms of tional dynamics, all elements discussed in the broad literature of SMEs, resemble those observed in the South American Games of Santiago 2014 Finally, we identify the perceived critical outcomes the South American Games of Santiago 2014 had on different stakeholders within Chilean society

A primary goal of this project was to extend the literature on SMEs, ticularly on third-order events in the context of the ‘new frontier econo-mies’, which are the second tier of emerging economies that are not part

that third-order SMEs in emerging economies have been minimally explored within the literature, we followed an exploratory approach In exploring the 2014 Santiago Games we used qualitative methods, thus allowing us to focus specifically on this one case or this specific event A qualitative approach allows us to take an inductive or bottom-up approach

to better understand the South American Games Qualitative methods also give voice to those involved in the case In this work, we have extracted

points of views, statements, and testimonies from various officials within the government, local organizing committee, athletes, and other stake-holders that help to explain their thought processes before, during, and after the games It also helps us to compare and contrast how various

qualitative methods help to explain how multiple stakeholders may pret an event

inter-This project evolved over the course of three years, which happened in four phases that overlapped significantly over time The first phase involved observation and data collection During this time, two of the four authors were actively involved in different capacities of the organization of the South American Games The second phase involved the collection, classi-fication, and organization of the material that was directly related to the games Most of these materials were collected in the form of secondary data including internal documents from the organizing committee, official reports, acts from meetings, and relevant information taken from newspa-pers articles and/or internet sites In addition, interviews with personnel involved in the organization of the games were also conducted during this phase The third phase involved the analysis and classification of data col-lected and organized in the first and second phases In addition, more interviews were conducted with personnel who were directly involved with the organization of the 2014 Santiago Games However, these inter-views occurred approximately one year after the games had ended Finally, the fourth phase included a comprehensive literature review The litera-ture review focused on the distinguishing elements of SMEs, emerging economies, and the contextual factors unique to both Chile and South America that were identified as critical to providing plausible answers to the questions addressed in this project During this time, various parts of the project were translated from Spanish to English

Individuals who participated in this project had diverse backgrounds Two of the four authors had no ties to the games, but experience and knowledge of SMEs The other two authors had direct ties with the games

as they worked for the National Institute of Sport during the time of the games We believe this eclectic and diverse group provided a ‘balanced’ association of scholars and practitioners In addition, the diversity of our group greatly benefited our analysis and served to leverage any possible biases in our writing and interpretation of this case

organization of the MonographThe monograph is divided into seven chapters This first chapter provided

an introduction to the South American Games and highlighted the

helps the reader to conceptualize SMEs While there is no consensus among scholars on what constitutes an SME, most definitions seek to highlight the importance of impact and legacy and assume the context of large, first-order events like the Olympics or the FIFA World Cup However, little has been done to examine the internal dynamics (i.e., the degree of complexity in which they operate) of SMEs, particularly those events of second or third order Many definitions highlight the presumed economic benefits of SMEs, whereas others focus on intangible benefits like nation branding and soft power or they question the real turn out for cities in terms of long-term economic impact Most scholars agree that boosters and those who have a stake in SMEs overemphasize the gains and

categorize SMEs We also discuss the role of context and argue that it is a critical element when examining SMEs, not only in second- or third-order events but also when these events are hosted in emerging economies

and the different terms scholars have used to describe less-developed nations Despite the efforts of international agencies like the International Monetary Fund, World Bank, United Nations Development Programme, and the Organization for Economic Cooperation and Development to create classifications of countries, there still is a lack of agreement on what separates developed- from less-developed nations The same lack of agree-ment exists on how to refer to less-developed nations Despite most of the academic literature on SMEs focusing on events held in developed coun-tries, over the last decade a significant number of studies have begun to explore first-order SMEs in emerging nations, the vast majority of these in BRICS countries Here we argue that for comparative purposes some of these findings may not be generalizable outside of this context Scholars need to expand the scope of studies on SMEs and go beyond first-order events by focusing on second- and third-order events in emerging econo-mies Examples of these types of events include the South American Games, Bolivarian Games, Central American and Caribbean Games, and the South Asian Games to name just a few Considering the paucity of

studies on these types of events, there is a need for more case studies and empirical research as well as new theoretical approaches to the study of SMEs Because leaders in emerging economies are increasingly interested

in hosting SMEs, these nations often mimic the practices of more oped nations to gain visibility and legitimacy As a result, hosting SMEs becomes an effective strategy to promote nation branding and use soft power as a mechanism to erase existing stereotypes about the host nation Finally, this chapter provides a brief overview of Chile’s path to develop-ment, outlining the country’s successes and failures in terms of economy and social development and also highlighting some of the country’s main challenges to improve its sport system We highlight Chile’s trajectory as the country morphed into an established emerging economy with sus-tained economic growth These factors provide the context for Chile’s current condition as a country with serious ambitions of hosting SMEs

suggest that the origins of the games can be explained by the need to strengthen South American identity We examine the background and context in which the South American Games were born It also highlights how the South American Games evolved from early editions in the mid- 1970s until today when the games have turned into a third-order SME. We identify inter-governmental organizations and trade blocs that were cre-ated in South America with the goal of strengthening relationships between nations and advancing the broader political, cultural, and eco-nomic sphere of the countries in the region While the South American Games have been in existence for almost four decades, its growth is just a recent phenomenon

the South American Games It first provides a historical account of the Chilean government’s failed attempts to bid and host SMEs We also pro-vide some plausible explanations as to why Chile changed its approach to bidding on these events in recent years The South American Games hosted in 2014 and Copa America hosted in 2015 represent the largest sporting events the country has organized since 1962 when it hosted the FIFA World Cup Thus, the South American Games have served as the ignitor for bringing more and larger events to Chile The fact that in November of 2017 Chile was awarded the 2023 Pan American Games shows how the South American Games played a role in the current arms race for new SMEs in Chile The chapter describes the role of the local organizing committee, and we argue that the complexity of organizing the

South American Games justifies it being categorized as a SME We discuss different aspects in the organizational complexity and the need for the transfer of knowledge, strategic alliances, and the development of a com-munications plan We point out the resemblance between communica-tions strategies used in the South American Games with those followed in larger SMEs This chapter also discusses the inclusion of the Para Olympic program as a part of the whole concept of the South American Games

American Games which undoubtedly provided the most visible legacy these games left for Chile

Games, including media, the public, athletes, and sport leaders This ter also includes a few excerpts from interviews conducted with govern-ment officials We also discuss the financial and legal setback to the local organizing committee that was unveiled more than a year after the games had ended, how this incident threatened the reputation of government officials, and how this problem threatened the credibility of those who govern sport organizations in Chile

attempt to answer the three main questions we examined in this project: What were the contextual macro-environmental factors that may have contributed to explaining the adoption of SMEs by Chilean authorities and booster coalitions? To what extent did impacts, legacies, and forms of organizational dynamics that were observed in the 2014 Santiago Games resemble those commonly described in the literature of first-order events? And, what were the most critical outcomes the South American Games had for Chile? Finally, and drawing from the business literature in emerg-

that the use of institutional theory seems a plausible theoretical framework for future studies aiming to understand the dynamics that follow second- and third-order events in mimicking first-order SMEs

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© The Author(s) 2018

G A Bravo et al., Sport Mega-Events in Emerging Economies, Mega

Event Planning, https://doi.org/10.1057/978-1-137-56888-5_2

Conceptualizing Sport Mega-Events

Abstract This chapter provides a broad conceptualization of sport mega-

events (SMEs), including various definitions, characteristics, and tions The impacts and legacies of SMEs are explored, thus referring to the short-term consequences and more long-lasting factors such as economic growth and well-being of the population Structural dimensions, size, and categories such as first-, second-, and third-order SMEs are also examined

classifica-We argue that no two types of SMEs of the same order are alike, neither are two emerging economies Therefore, it is imperative to put attention

to contextual differences when examining SMEs to help determine how these differences might affect the outcomes and processes of these events

Keywords Impacts • Legacies • Context • Structural dimensions •

First-order • Second-order • Third-order SMEs

Why do governments around the world show interest in hosting SMEs? Although a single answer would be insufficient to capture the motives and aspirations of sport leaders and government officials, it is possible to pro-vide a general explanation as to why these events occur and attract the

is typically rationalized based on factors related to the sport, as well as economic and social benefits that accrue to the host nation For Poynter

and Viehoff (2016), SMEs have been closely associated with the mation from the modern to the post-modern’ (p. 1), whereby cities seek

‘transfor-to re-invent their urban, economic, and cultural landscape ‘transfor-to compete for

three primary factors which have led to the expansion and growing tion of SMEs The first factor being new developments in technologies and mass communication, specifically satellite television, which have cre-ated global audiences Second, sport-media business alliances have expanded these events, whereby sponsorship rights, broadcasting rights, and merchandising have turned many events into lucrative alliances worth millions of dollars The final factor has perhaps been researched the most and it concerns how mega-events are seen as valuable promotional oppor-tunities for cities and regions

argument given to justify the existence of SMEs is the potential economic impact or the ‘prospect of economic growth’ (p. 9) an event has over a city, region, or country Notwithstanding, these authors also warn that some studies do not precisely support this claim (Mitchell & Stewart,

opposing views The first view suggests that urban regeneration, economic growth, and positive legacies are not only the main outcomes of SMEs, but also serve as the justification of why cities should pursue these ven-tures In contrast, the second view claims that SMEs have served as a site for demonstration of popular discontent not only with the event itself, but also with the prevailing political order Despite these contrasting views, the competition to host sport events (particularly large events) has increased globally This growth has not been confined only to the so- called developed world, but instead has also gained significant ground in emerging nations of the ‘Global South’ Before we delve into the more specific features, outcomes, and even some of the controversies SMEs gen-erate, let’s first explore some of the definitions proposed by scholars that might help us advance our understanding of what these events are and mean Also, let’s review some of the arguments (pro and against) and find-ings of the impacts, legacies, and challenges these events have upon com-munities, cities, and nations across the globe that attracts so much attention from scholars

Defining SMeSWhile mega-events have gained considerable attention in recent years,

dating back to tribal conclaves and religious festivities with 776 BC fied as a milestone for the first Olympic Games in Ancient Greece Today, examples of mega-events can be found in major fairs, festivals, expositions, and cultural events, and sporting contests that are held on a regular or one-off basis,  and provide an opportunity for international commerce,

describes the incredible amount of emotion felt by respondents, thus gesting a sense that something more important is happening which tran-scends sport SMEs have been characterized as ‘global occasions of enormous economic, political, and social importance’ (Giulianotti &

cultural events which have a dramatic character, mass popular appeal and international significance that are typically organised by variable combina-tions of national governmental and international non-governmental organisations’ (p.  1) The two primary features of mega-events are the significant consequences for the host region along with their considerable

are ‘discontinuous’, unordinary, international, and simply big in

rationality and social control, and they ‘encompass multiple layers of ernance, massive urban change, staggering sums of public and private money, and function as historically situated festivals that appeal to a global

have been viewed economically as an industry around which cities can devise urban regeneration strategies and socially as a tool for the develop-ment of urban communities and the reduction of social exclusion and crime While these alleged benefits are widely accepted by many and rarely

of empirical research to support many of these claims Horne and Manzenreiter added, ‘often research has been conducted in advance of

While many of the above definitions of SMEs seem to exalt the more

differentiate what makes a mega-event unique from other events, one must understand the internal and external characteristics of these events External attributes may include factors such as economic impact and leg-acy of the event There have been numerous scholars who have examined

much less attention was focused on internal attributes such as tional behavior and how organizations work together in planning the event and even less attention has been given to understand the levels of organizational complexity that organizing an event demands

organiza-Despite the number of definitions given to describe SMEs and the lack

of agreement as to what exactly constitutes a SME, most definitions tify the notion of size and scale, media attention, cultural significance, economic development for host communities, and international signifi-cance and global appeal

In the burgeoning literature on SMEs, impacts are linked to the short- term economic consequences of an event; whereas legacies refer to more lasting impacts that involve not only economic growth through tourism (e.g., job creation or new sport infrastructure), but also other less visible and intangible alleged benefits These are often benefits for the population such as the development of human capital skills (e.g., volunteering) or enhancing a sense of well-being and proudness through the so-called feel

The impact of an SME is usually referred to in economic terms (Holt

concerns for governments, policymakers, businesses, and communities

normally derives from consumption by visitors at hotels, restaurants, and other local businesses during the event and then increased tourism after

dependent upon factors such as the type of mega-event, the participating countries, the host country’s level of development, and whether the event

is held during the peak or off-season In a study of the 2000 Summer

economic impact for the state hosting the Games provided there is not too

large a financial loss on the games, including construction costs For

tourism and three FIFA World Cups and five Olympic Games and found very little economic justification However, their findings suggest that these events deliver some form of happiness to the populace Müller

that seriously affect the planning of sport mega-events (e.g., ing of benefits, underestimation of costs, event takeover, public risk tak-ing, rule of exception, elite capture, and event fix) As a result, many of these issues can turn SMEs into obstacles for enhancing economic and urban development

destination’s hosting of a SME can lead to considerable debt and under- utilized infrastructure The impact of taking on such debt becomes more pronounced for smaller and less-developed nations Bason, Cook, and

award the World Cup to less-developed nations that cannot attain the levels of attendance that are seen during the event itself

While a vast number of studies do not support the idea that mega- events lead to enhanced economic development (Humphreys &

and nations continue to bid on these events Thus, there must be some benefits that accrue to those in power who are bidding on these events

host cities and nations to justify and publicly fund projects that benefit those who are well positioned to access the capital required to complete the projects and stage the event on short notice’ (p.  587) Within the

event organizers have a large incentive to provide large economic impact numbers for events such as the National Football League’s Super Bowl and Major League Baseball’s All-Star Game Therefore, cities and public officials are motivated to subsidize professional sports by funding the cost

of their stadiums The idea behind this strategy is to give the impression that these large sporting events are extremely profitable, therefore, it is good business for the city to invest in professional teams

The positive and often unquestioning justification for hosting sporting events has become the norm and it is not limited to just the United States

to examples of the misrepresentation of mega-events such as the 1997

Formula One Grand Prix held in Melbourne, Australia, and Toronto’s unsuccessful bid for the 2008 Summer Olympic Games In the case of Melbourne, Hall suggests the economic benefits were grossly overstated and misrepresented in terms of size In Toronto, when bidding on the Olympic Games, Hall says that only one out of the 55 members of the Toronto City Council voted against the Olympic bid despite only having

a short 20-page background proposal and not having an estimated cost for the Games

Despite the above findings, today there is increasing pressure on both governments and the planners of sport events to demonstrate and plan for

unplanned, positive and negative, tangible and intangible structures ated for and by a sport event that remains longer than the event itself’

faceted and far-reaching concept, thus highlighting what some scholars

refer to as hard and soft legacies, or even of physical and spiritual legacies.

around the economy (e.g., jobs, businesses, global advertising), structure (e.g., improved transport routes, regeneration of inner cities), new sports facilities, and increased public participation in sport Chappelet

legacy, infrastructural legacy, economic legacy, and social legacy More recent literature focuses on political legacies that can be gained from SMEs

While the literature often focuses on testing the economic benefits of hosting SMEs, these events also serve less tangible purposes that boost

national boosters a chance to signal important changes of direction, to reframe the narrative about the host destination, and to reinforce key mes-sages about what the host destination is becoming or has become In a

the most important legacies relate to the cultural, social, and political

effects accruing to the host city These so-called soft legacies can help to

change the perception of identity and image of the host city to reposition

it as a world destination

national borders and include improved or strained diplomatic ships, recognition of a nation’s legitimacy, improved or marred country reputation, and an enhanced business investment environment According

relation-to Grix (2013), there is growing evidence that states seek to host SMEs above all else because they believe it will enhance their international prestige.

Despite the ubiquity of sport legacies when studying SMEs, Coakley

are strategically planned, organized, and funded by existing social tures These authors noted that ‘legacies and development are not due to chance, wishful thinking, or beliefs about the ‘power of sport’ They are intentional outcomes grounded in political process that begin with bid preparation and continue through and following the mega-event’ (p. 581)

Notwithstanding the numerous ways scholars have defined and alized SMEs, some still claim there is ambiguity as to what classifies an

concluded that mega-events are heterogeneous ventures that are difficult

to categorize in one single taxonomy

Events and mega-events differ significantly in their objectives, nature (e.g., sport, arts, religion), forms of consumption, amount of investment, decisional process (e.g., degree of complexity), and periodic behavior

an event, including sport events, becomes mega when it moves from being

a usual type of event to an unusual or extraordinary event A mega-event becomes ‘unusual’ or ‘extraordinary’ when it shows the following four dimensions: spatial, organizational, economic, and time The spatial dimension refers to the global reach of an event or how far it geographi-cally reaches out from its site Therefore, a sporting event that attracts global audiences is larger than an event that only attracts regional audi-ences The organizational dimension refers to the numbers of actors involved and the degree of complexity it takes to put that event in place How long it takes to organize the event, and the complexity of the deci-sional process become salient dimensions which separate usual from unusual sporting events The economic dimension is best represented by the cost of an event Typically, this dimension is represented not only by the amount of investment (e.g., infrastructure, organization, etc.), but also by the extent to which this investment affects the life of the people who live in the host city For example, events that require significant

investment in infrastructure might change the life of a city in many ways, positively or negatively Positively, when new infrastructure is built to improve host residents’ life (e.g., a new transportation system) It can also have a negative effect when the event requires displacing an entire neigh-borhood to leave space to build venues for the event Finally, the time dimension refers to the frequency of the event Thus, a sport event that occurs every four years will be categorized as unusual in comparison to an event that occurs on an annual basis Therefore, the less frequent an event occurs, the more extraordinary or less ordinary an event becomes.

mega-event He noted that for an event to be categorized as such, it must have four distinguishing dimensions: (a) attract large numbers of visitors; (b) have a large mediated reach; (c) come with large costs; and (d) have large impacts on the built environment and the population Although Müller noted that several other characteristics also exist in most mega- events (e.g., having a temporary organization and ruled by a governing body), these characteristics should not be considered critical elements when defin-

dimen-sions does not resolve the question as to the size of the event To provide a partial answer to this question, he developed size indicators (e.g., number

of tickets sold, total amount in broadcasting rights, capital investment, etc.)

which then serve to inform three categories of events: major-events, events, and giga-events For Müller, an event is not categorized in a fixed

mega-category because similar events (e.g., summer Olympics in Rio compared to the summer Olympics in London) might have different size indicators

Scholars have also classified SMEs based on the scope of participation (number of participant countries and athletes), level of exposure and pro-file, and territorial scope (global versus continental or regional) Cornelissen

FIFA World Cup appeal to the widest reach in terms of prestige, interest, attendance, and publicity While also international in scope, second-order SMEs such as the Commonwealth Games, the World Military Games, and the World University Games are smaller in terms of their extent and level

of participation than first-order events Finally, third-order events include regional or continental tournaments and are much more limited in scope However, they are also international in scale Examples of third-order

events include the Central American and Caribbean Games, the South Asian Games, and Copa America in football to name a few Although Cornelissen does not provide a more refined description of the differences between second-order events and third-order events, it is possible to argue that these two categories are not strictly hierarchical Instead they are nominal as the global reach of a second-order event does not always mean

‘larger’ than a regional third-order event For example, the third-order

2010 Asian Games in Guangzough, China involved almost twice as many participants as the second-order 2014 Commonwealth Games in Glasgow,

second- order event in the sense they are both touted as a ‘kickstart’ for major infrastructural projects, offer opportunities for place promotion, and enhance national prestige He also notes two other important similari-ties about these two types of events: they are typically organized by arms- length, time-limited, public-private organizing committees and overseen

by international sport organizations that are often unaccountable, and they have an increasing amount of security, costing hundreds of millions

of dollars to ensure the safety of both participants and spectators In trast, Black notes the critical difference between a first-order event and second-order event being less about scale than that of prestige and profile

con-As the number of second and third-order events is on the rise, Black

pitfalls, while simultaneously considering their opportunity costs and alternative strategies for carrying them out Because first-order events typ-ically represent the domain of a selected group of developed nations, Black

aspire to host second- and third-order events One common argument that emerging nations use when hosting second- or third-order sport mega-events is to gain capacity building to eventually one day aspire to host a truly first-order event Because of the regional nature of the South

While previous propositions focused on examining some of the defining properties that characterizes a SME, it is also critical to focus on where an event takes place Scholars have argued for the importance of context

within international business (Buckley, 2002; Child, 2009) Considering that SMEs rotate from country to country, understanding the specific cul-tural and institutional contexts that shape these events is of paramount importance for both scholars and practitioners Context refers to ‘the orga-

components of national context that affects the operations of a given industry within any country: material systems, ideational systems, and insti-tutional outcomes Material systems in a country can be of two types: eco-nomic (e.g., financial, human, and social capital; ownerships of business) and technological (e.g., transport infrastructure; intensity and frequency of communication technology) Ideational systems can be reflected in terms

of the cultural, religious, and political values people hold, while tional outcomes are the ways different types of organizations (e.g., govern-ment, private, for-profit, not-for-profit, etc.) function and adhere and conform to national and international laws, regulations, and standards.Considering that organizations in different countries differ significantly

institu-in the way they operate, it is critical when examinstitu-ininstitu-ing SMEs to focus on contextual components to avoid deluded generalizations of the effect SMEs have on a host country For example, while China and Russia are both classified as emerging economies, these two countries differ signifi-cantly from one another, but also differ from other smaller emerging economies These countries not only differ in terms of their size of the population and economics, but also on the socio-cultural and institutional ways people and organizations work Thus, it is imperative when studying SMEs in emerging economies to realize how these contextual differences affect processes and outcomes These should be studied not only between countries but also within categories of countries (e.g., emerging countries versus less-developed countries or BRICS countries with other emerging countries) Broad and varied definitions of SMEs and categories of dis-similar countries may blur findings of how SME outcomes and processes occur in non-traditional settings While we know that most SMEs (e.g., the Olympic Games) have taken place in developed nations, we know less about events that take place in countries considered as emerging econo-

becoming useful, even necessary, to distinguish more clearly and tently between first-order and second-order mega events, and there is an increasing need to devote more research attention to the latter group’ (p. 6)

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© The Author(s) 2018

G A Bravo et al., Sport Mega-Events in Emerging Economies, Mega

Event Planning, https://doi.org/10.1057/978-1-137-56888-5_3

Emerging Economies and Sport

Mega-Events

Abstract Most studies on SMEs have focused primarily on first-order

events hosted in the global north and/or BRICS economies Second- and third-order SMEs have received significantly less attention despite their popularity and rise in emerging economies This chapter provides context for understanding what constitutes an emerging economy and the terms scholars have used to describe less-developed nations It also describes Chile’s path to development and its aspirations for hosting SMEs Because leaders of emerging economies are increasingly interested in hosting mega-events to gain international visibility, we explore the role of nation branding and soft power This chapter helps the reader to understand the meaning of emerging economies and how this factors into the case of the

2014 South American Games in Santiago

Keywords Emerging economy • Emerging markets • Global North •

Global South • Nation branding • Global South • Global North • Chile’s sport policy • Nation branding • Soft power

Until recently, scholars commonly referred to countries and regions of the world as developed and developing, first world and third world, and/or global north and global south While the use of these terms has not disap-peared from our vernacular, it has become more common to refer to these

countries as emerging economies or emerging markets This is particularly

true when making a distinction between those countries that fall in the so-called developed world and the less-developed world This issue is not just semantic In 2016, the World Bank decided to remove the term

‘developing countries’ because a number of indicators that were ously used to categorize these countries does not have the same relevance today For example, infant mortality, life expectancy, and even educational standards have changed significantly over the last four decades such that

have argued that existing classifications between the ‘developing tries’ does not capture the heterogeneity that exists between these coun-

becoming more evident between countries

Defining and categorizing countries and regions of the world is not only a convoluted task, but at times also seems impractical These catego-ries assume certain immutable characteristics of members within a group They also present methodological problems when two or more members from the same category are assumed to be comparable Thus, most clas-sifications do not capture the particularities that exist between countries

world was coined as a metaphor of the third estate of the French

revolu-tion and referred to poor countries and colonies that were not part of the developed world While third world is a term that has not totally disap-peared from the lexicon of scholars, Eriksen noted that its use has ‘become increasingly unfashionable’ (p. 3) Third world is less commonly used not only because it highlights the notion of hierarchy but also because it became obsolete after the fall of the Soviet Union in the early 1990s Third world countries originally referred to those countries that were not

part of the first world (capitalist economies) or the second world

(commu-nist bloc), but instead to those countries that were not aligned with one

popular among scholars While this term does not reflect the notion of hierarchy like first and third world, it implies a segmentation of worlds As Rigg noted, global south ‘is not a strict geographical categorization of the world, but one based on economic inequalities which happen to have

many of these terms create some degree of disgruntlement among those who were clustered in a second- or third-class wagon, the prevalence and

overall acceptance of the terms ‘emerging market’ or ‘emerging economy’ is

more an issue of ‘political correctness and marketability than analytical insight’ (p. 7)

Scholars who have studied SMEs, sport policy, sport sociology, sport- for- development, and sport economics in countries and regions outside the rim of the developed world have predominantly used the term ‘devel-

How to refer to countries and regions outside the ‘developed world’ is another issue that has received attention by sport scholars Kidd and

devel-opment and peace, noting ‘the way to refer to such countries is extremely contentious in the academic and policy communities, and has been the subject of a great deal of debate among the research teams’ (p. 52) Kidd

the World Bank ‘low to middle income countries’ best captures the essence

of the term:

‘The use of the term is convenient; it is not intended to imply that all mies in the group are experiencing similar development or that other econo- mies have reached a preferred or final stage of development Classification

econo-by income does not necessarily reflect development status’ (World Bank,

2008 , as cited in Darnell, 2010 , p. 72).

Emerging economies are neither the poorest nor the most developed and are thus in a transitional phase to becoming a fully developed or high-

used by World Bank economist Antoine van Agtmael at the end of the

used were third world economies and least rapidly developing economies

However, few countries wanted to be classified as third world economies, thus emerging or developing economies were originated and often used more or less synonymously According to the International Finance Corporation of the World Bank, ‘third world was a term that connoted extreme poverty, shoddy goods, and hopelessness to many at the time But ‘emerging markets’ … suggested progress, uplift, and dynamism’

as countries of low income and rapid growth that use economic tion as their primary engine of growth Emerging markets have also been characterized based on their low incomes, variability in consumers and infrastructure, and relative cheapness of labor (Dawar & Chattopadhyay,

market from an emerging market is the overall growth in economic tern, increased standard of living, and the presence in world trade of the first compared to the latter

the world’s population resides in countries with emerging economies Although there is no common acceptance of which countries have emerg-

India, Indonesia, China, and a few countries in Latin America as some of

that emerging markets accounted for more than half of the world’s gross domestic product (GDP); and that world output from these economies grew at more than a percentage point a year from 2003 to 2011 Because investors around the world need to know how capital markets operate across the world, categorization and classification of countries has evolved The classification or grouping of countries was made based on accessibil-ity, regulation, size, and transparency of operation of their markets (Gaeta,

coun-tries represent not only the largest sized markets among emerging mies, but since the mid-2000s these countries have also greatly impacted the world economy

econo-BRICS countries often receive the most attention from academe as well as the popular press when discussing matters related to emerging markets

p. 575); and despite their economic slowdown since 2013, their presence and

Nayyar (2016) suggests the importance of BRICS countries is not solely attributed to economics, but also the ‘collective voice in a world where the power of balance is changing’ (p. 575) This aspect was also highlighted by

of the rest’ has not been just about economic growth, but also about political changes and technological growth These factors have all contributed to plac-ing less-developed nations at center stage

One thing to keep in mind is that while some of these classifications include sub-categories within a given cluster, there still is a great amount

of heterogeneity among countries grouped within the same category

to recognize that ‘emerging economies’ are also not homogeneous’ (p. 1298) These authors argue that ‘significant diversity of initial condi-tions, transition paths, and competitive outcomes makes it imperative to move away from the all-encompassing label of ‘emerging economies’

attention on the different contexts, realities, and particularities of the social, cultural, political, and institutional contexts of the so-called emerg-

proposed a typology of emerging countries based on the degree of tional development, and the degree of infrastructure and market develop-ment these countries show The importance of understanding that these countries advance through different stages not only is relevant for inves-tors, but also is critical for advancing scholarship

institu-Given this complex reality, it has been very challenging to clearly define

number of classifications by major indexes has evolved over time Most classification indexes include an average of 20–25 countries in their rank-ings except for organizations linked to the United Nations (e.g., World Bank, the International Monetary Fund, and the United Nations Conference for Trade and Development) These organizations use differ-ent criteria, including geographical regions, gross national income, bor-rowing capacity, and human developed index (HDI) among others (The

consid-ered fully developed yet include (a) low-income developing countries and emerging and developing countries (IMF); (b) low human development countries; (c) medium human development countries, and high human development countries (UNDP); and (d) low-income countries and