This article is a guest contribution by Sunil Asnani, Research Analyst, Matthews Asia
During my recent trip to India, I got a firsthand look at efforts DelhiāIndia's capitalāis making towards hosting the 19th Commonwealth Games, which offers the country a distinctive brand building opportunity. While the preparations haven't been flawless, the size and scale of this event are arguably larger than anything India has handled before in this domain.
The Commonwealth Games feature multi-sport competitions involving thousands of elite athletes from Commonwealth member nations. The games were first held in 1930 as a means to foster bonding between the members of the then British empire. Organized every four years, they are now the third largest multi-sport event in the world.
The 2010 Commonwealth Games in India can boast many firsts. They are going to be the largest and the most expensive Commonwealth Games ever held. Seventy-two teams will compete across 17 sports in over 285 events. The games will cost an estimated $1.6 billion, which will involve construction of five new stadiums and a games village. It is the first time they are being held in India, and only the second time in Asia. The games will also be the first ever to be recognized as "green" due to the care taken to optimize use of water and energy while minimizing environmental damage.
Amidst the excitement surrounding the games, there have been concerns regarding Delhi's level of infrastructure preparedness. The Commonwealth Games' chief has complained of delays, poor execution (e.g., a recently constructed pedestrian bridge collapsed) and a lack of cleanliness around the games village. One team has already delayed its arrival in India for security reasons. While travelling between meetings, I personally witnessed many work-in-progress construction sites, including flyovers, stadiums, parking lots, and participants' accommodations. Excessive rainfall in Delhi has accentuated the delays and increased the incidence of water borne diseases. The city's attempts to have dedicated traffic lanes for game participants on already-narrow Delhi roads have led to frequent traffic jams.
The whole episode is just one illustration of the larger country-wide infrastructure bottlenecks, which I commented on after my last visit to India. This is a change from India's success with hosting another and arguably bigger multi-sports eventāthe Asian gamesāin 1982. Those games marked the first time Delhi saw the then state-of-the-art infrastructure in terms of stadiums, sporting arenas, and flyovers. At that point, the prime minister had taken direct responsibility towards execution with greater command and control than what I found in the Commonwealth Games this time. The good news is that India's government has decided to step up the current infrastructure spend from about 5% of GDP to 9% going forward.
Notwithstanding the issues that remain, the preparations for the Commonwealth Games have surely ramped up Delhi's severely strained infrastructure. The city has made significant progress towards construction of the METRO (an intra-city train network) and an international airport terminal. It has already given employment to hundreds of thousands of construction workers, and will likely prove positive for the country's tourism. As an offshoot, it might also inspire more investment in developing India's sporting talent.
Sunil Asnani, Research Analyst
Matthews International Capital Management, LLC
Copyright (c) Matthews Asia
