Encouraging investment - An Olympic Feat?

The Olympic Games is much more than an extended sporting event, it is a chance for a country to celebrate their national identity. Four years ago, the Chinese used the occasion to flex their muscles and announce their arrival as a true superpower. For Britain there is a similar need to show a vibrant and dynamic country, but the reasons behind this are very different.

The Games were seen as a way to jump start the sluggish UK economy, with the leads applied to its financial heart but the benefits felt by the entire country. The theory went that by delivering a faultless event on the scale of an Olympics, Britain would send a message that it was ‘open for business’. Foreign investment would pour in and Britain would once again lurch into economic growth. But as the Coalition is fast finding out, it’s not quite that simple. Many of the delegates arriving from foreign climbs have used the Games to pose some difficult questions – ‘Why has GDP shrunk by 0.7%?’ ‘Is the Government genuinely committed to investing in UK infrastructure?’ Far from providing an opportunity to communicate London as an investment destination, the Games have been used to grill the Government on its economic vision - something it has so far struggled to articulate.

There have been other unforeseen issues. One of the major concerns around the Games was that it would expose London’s ageing transport system, with many predicting it would crumble under the weight of new visitors to the capital. What’s transpired however is arguably more damaging for the image of London and the UK, and for the prospects of encouraging foreign investment. Instead of nightmare commutes, London has seemed closer to a ghost town at times, with regular commuters working from home or leaving the city altogether. Hardly the image of a modern, bustling metropolis perhaps.

Of course, just as an Olympic Games is far more than a sporting event, it is also much greater than an extended sales pitch. In Beijing it helped to redefine a country’s notion of self and place in the world. At the very least, the London Games may provide a welcome boost to the UK’s confidence, but this will largely depend on how ‘Team GB’ performs. So what will it be -  sporting success and financial renewal, or gallant failure and economic inertia? Keep your fingers crossed.

John Hood

Consultant

john@linstockcommunications.com