FRIDAY, 8.30AM
AN Olympic bid assessment team, appointed to examine the socio-economic and environmental impact of the Games in Cape Town, has accused the Development Bank of over-optimistic predictions.
The Development Bank’s macro-economic predictions on job creation and revenue inflow played a key role in bringing Cabinet support to the bid, and were prominently used in Cape Town’s proposals to the International Olympic Committee.
The new report, by UCT economist John Stuart, says more prominence should be given to inflationary ramificatons, and the impact on balance of payments has to be reassessed. The bank understated various constraints on investment growth, output growth, job creation and construction capacity.
The report had also failed to relate the specific structural characteristics of the Western Cape economy to the experiences of other Olympic cities.