Update on the impact of negative publicity from the Commonwealth Games
The frenzied news coverage of apparent problems within the contestant’s accommodation in Delhi has hurt Indian business confidence. The fastest growing economy on the earth has seen pictures broadcast around the globe that make it look less than capable of organising a major event.
The eyes of 71 competitor countries will be on Delhi and India as the games open and work towards their climax. The games are estimated to have cost $US6 billion to stage and the government are hoping for a business and tourist boost once the competitors have gone home.
The thought that India may not show it can provide world class facilities as the Chinese did for the 2008 Olympics is a worrying thought for the emerging business sector.
Already Moody's rating agency said investment in India could be damaged as a result. "
The negative publicity could deter foreign investment and give multinational businesses considering expanding in India reason to think twice."
If the problems persist then the games may turn out to be the most compromised since a 1986 boycott of the Games in Britain, when 32 nations stayed away because of the Prime Minister Margaret Thatcher's objections to sanctions against apartheid South Africa.
But the power of business might just be greater than the odd marked wall, for as one Indian national newspaper noted
"India's cash and clout soften tough stands," noting India was Australia's third-largest export market and an important market for Canadian goods as well. Perhaps trade will be deemed more important than the comfort of athletes?