China's enormous Olympic outlays -- from a $3 billion airport terminal to the $500 million "Bird's Nest" National Stadium -- are enough to make the Athens Games' $15 billion Olympic budget look modest by comparison, and Greece has been left with a heavy debt burden because of it. The host of the 2012 Olympics, London, is also embroiled in controversy over rising Olympic costs.
In order to successfully host the Olympics, Beijing is not overlooking any details. The government spent $30 million reshaping the image of Jing-Shun Road, which used to be dusty suburbs, by planting trees and flowers and building decorative walls. This road is an auxiliary road leading to Beijing Capital Airport and is near the rowing venue. The government also gave small compensation packages to residents along the road, forcing them to relocate.
Economically speaking, China can shoulder what will be the largest-scale Olympic Games in history. China's GDP this year is expected to reach as high as $4 trillion, so compared to that, the cost of hosting the Olympics is no big deal, and sponsors have already shouldered part of the cost. Moreover, most of the spending isn't directly on the Olympics but rather on roads, subways, airports and other areas that bring long-term benefits.
Nevertheless, some development issue experts doubt whether China's enormous investment in the Olympics sends the wrong message. Although China's economy has experienced rapid growth in the past 30 years and the living standards of many people have significantly improved, hundreds of millions of people still live in poverty. Government spending on health care and other social benefits has always been less than in other areas.