Sunday 19 August 2012

Olympics and India: Half Glass Full or....


Indian contingent returned with six medals in recently concluded London Olympics. It has generated mixed reactions in India. There have been celebrations for best ever medal haul in Olympics, while there have been criticism for a handful of medals from a country of 1.2 Billion people.  Several reasons have been attributed for low performance in Olympics –lack of killer instinct or competitive spirit, pre-occupation with Cricket, social and economic reasons. These reasons have played considerable role in lack of Olympic medals in India’s show case, but off late India has been undergoing significant social and economic reforms. Economic factors, worldwide seem to have played significant impact upon a country’s performance  in Olympics.
Goldman Sachs (GS) “ The Olympics and Economics 2012” has been in the news recently. It predicted the medal haul by each country based on predominantly economic factors. It predicted 5 medals including 2 Gold medals for India. Its prediction has been even more accurate for host country Great Britain- a total of 65 medals. The list of predicted and actual medals for few top sporting countries in London Olympics is listed here. The prediction of overall medals for countries with double digit medals have been impressive. It is not my point to debate the accuracy of prediction here, but the correlation with economic health of the country seems to play a significant role in success in Olympics. Though money does not affect all sports equally but country’s capability to promote sports and its infrastructure does matter. Political stability, Democracy and country specific strengths & skills are other factors impacting success in sports, in general.
Source: Goldman Sachs Global Economics, Commodities and Strategy Research- The Olympics and Economics 2012, Dated July 2012

Goldman Sachs’ The Olympics and Economics 2012 discusses economical and other related factors in details. The case of few developing countries does show a good correlation with the economical factors. I have tabulated three developing countries and compared their performance in Olympics- India, Brazil and China.


The population of the country does not seem to play a major role, while economic parameters (such as GDP per capita) seem to relate with the medal haul more closely. Therefore, the two most populous countries, China and India, started to win medals in Olympics only after their economies looked northwards. Brazil won only 3 medals in 1992 and went on to win 15 medals the very next Olympics, though it had earlier won 6 medals in 1988 but the increase in medal tally is as phenomenal as its economic growth. In China, sports reforms and good administration propelled its success in Olympics, but it seems to have been ably supported  by its economic prowess.
 

India’s participation, performance and success in Olympics are summarised in below graph. India’s performance have been improving gradually synonymous to its economic growth. Since number of medals have been low over the years, one need to consider the potential medal winners at each Olympics. The “Among top 10 performance” column shows the number of participants who featured amongst the top 10 in finals (for sports like athletics) or qualified for at least quarterfinals in other events. The swelling of medal worthy performances in various disciplines/sports gives a glimmer of hope.


Any article on India at Olympics would be incomplete without mention of Hockey.  India’s traditional stronghold seems to have slipped away badly, reaching its nadir this Olympics with 12th and last position in the table. Hockey continues to defy economic growth and it is appropriate to mention that it is not only economics which can help you win medals. This is one of the sports where it takes time to build skills, and economy plays a little role. Also India have been on receiving end due to changes in the rules and regulations of Hockey, which went against its traditional skills and slow pace, which India had mastered. Even otherwise, the participation and performance of team sports by India, in general and Olympics, in particular have been traditionally poor except Hockey. Even in Hockey, there has been no medals for the last 40 years (except in 1980, when many top Hockey playing nations did not participate).
Despite political interference, poor & corrupt sports administration, skewed economic growth and more academically inclined mindset, India has been able to come out of its slumber and produced at least one medal consecutively in last five Olympics. More remarkable is its consistency in all round performance over multiple sports and also other sporting events such as Commonwealth Games and Asian games. Needless to mention- hard work, practise, skills and more importantly- hunger to win seem be paying off now.
Finally, India seems to have arrived at Olympics and the next Olympics at Rio could mark a watershed for the growing economic power.

- Sandeep
 

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