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Private Investors Should Join in Olympics Venue Construction: Economist
Some venues and supporting facilities of the 2008 Olympic Games can be constructed using private investment, said Hai Wen, an economics professor at Beijing University.
To steer investment in the Olympics in a market-oriented orbit, private investment should be introduced under the precondition of fair play, Hai was quoted as saying in Tuesday's "Economic Information Daily."
The government's finances cannot be solely focused on the construction of Olympic venues as 60 percent of the required venues are yet to be finished before 2008.
"It is absolutely necessary to get private investment involved, " said Hai, deputy-head of the China Center for Economic Research of Beijing University, who is also the only economist on the Beijing 2008 Olympic Games Bid Committee.
"The Olympics means business opportunities," he said. "Some venues and supporting facilities can be operated by private entities according to market rules."
The government should act as an organizer that invites public bidding and introduce private investment to the venue construction. In so doing, will the government not only mobilize sufficient funds before the Olympics, but also make the most of the venues and facilities after the Games.
The economist said China's public infrastructure was financed by the government, individual donations, and collective allocation in the past. Owned by the government, the infrastructure was managed by government organs.
He said that it has caused a huge waste of resources in cases that such utilities could not be well operated though the government has paid a lot more money to use and maintain them.
He believes that the government should sponsor some public utilities, such as roads, environmental protection, which are beyond the capability of private investment.
"It is suitable for the government to fund such projects which make little profits but benefit the public," he said.
The government should play a role in organizing public bidding, project construction, and supervision.
Hosting the Olympics will accelerate the growth of communication, transportation, construction, service, and environmental protection industries and help them meet international standards at an early date.
However, the economist warned that investors should remain sober-minded on business opportunities brought by the Olympics and try to prevent a bubble economy possibly arising from overheated investment.
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