Friday, June 22, 2018

Analysts warn Yekaterinburg of consequences of excessive spending for 2020 Expo preparation

As Yekaterinburg continues the bidding process to host the 2020 World Expo, some analysts have cautioned that hosting privileges can come with negative consequences.

Yekaterinburg's chances of hosting the exposition are most negatively affected by international tensions over Russia's recent passage of anti-gay legislation. If geopolitical opinions are surmounted by the city's bid, hosting World Expo 2020 may inject billions of dollars into the city's economy, according to The New York Times.

New York Times writer Georgi Kantchev, however, urged that agencies and other entities charged with developing Yekaterinburg's Expo City should take care not to overspend or create too many buildings if awarded hosting privileges.

Such was the cast with Shanghai's Expo in 2010. Shanghai spent $50 billion in preparing the event, much greater than the $4.2 billion budgeted, leaving the city with tremendous debt and a city's worth of empty buildings, The New York Times reports.

Kantchev proposed that any city preparing to host a large international exhibition would do well to circumnavigate the unmitigated grandiosity and instead create meticulous budgets and administrative checks and balances to ensure the event is financially beneficial in the long run.