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Globalization scores a goal at the World Cup

By Ralph A. Cossa and Jane Skanderup

Thursday, Jun 06, 2002, Page 9

Northeast Asia is gripped by soccer fever, as South Korea and Japan co-host the 2002 World Cup -- the first World Cup ever to be held in Asia. The May 31 opening ceremonies in Seoul were officiated over by South Korean President Kim Dae-jung and Japanese Prime Minister Junichiro Koizumi, who were no doubt dreaming of dollar (or won/yen) signs as well as victories from their home teams.

While expectations run high, whether the games will be an economic boon or boondoggle for local economies from Cheju-do to Hokkaido is very much in ques-tion. The hard-won efforts by Japan and South Korea to co-host the games may end up entailing greater financial spending than gain. Japan has reportedly spent some US$10 billion and South Korea some US$2 billion, to build new stadiums and roads and upgrade hotels.

While optimists estimate that up to US$25 billion will be injected into Japan's economy and some US$9 billion into South Korea's, critics dispute these numbers, arguing that as with all sporting events, officials at all levels of the sports chain promise more benefits than ever materialize.

On the plus side of the ledger, some 3 million fans are expected to attend the four weeks of matches; the Chinese allotment of tickets has already sold out -- China is playing in its first ever World Cup this year.

Americans may be shocked to learn that the World Cup is the largest international sporting event in the world. With millions of fans expected to be watching worldwide, the opportunity for South Korea and Japan to demonstrate their Asian hospitality and natural beauty to the world should pay tourism dividends for years to come.

This would be largely offset, however, if the predominant visual is one of local police fighting with British (or other) hooligans. The Japanese, in particular, seem more concerned about rowdy European fans than about terrorists; extra security precautions to deal with both have also added immeasurably to the cost of hosting this year's World Cup.

But beyond how much yen and won circulates, one subtle but long-lasting economic effect may be a new impetus toward credit card usage.

Asia's credit-card penetration is notoriously low, comprising about 6 percent of purchases in Japan, for example, compared to 75 to 80 percent in the US. MasterCard has hired Brazilian soccer great Pele to promote credit card usage and wants cash machines in both countries to process international transactions.

This is hardly a case of another greedy multinational forcing its will upon reluctant masses, however. An increasing number of Korean consumers are lodging complaints about stores that refuse to accept credit cards, according to the National Tax Service. And Chinese fans complained loudly that their domestic-issued credit cards weren't recognized by the FIFA Web site for ticket purchase.

The masses, at least in this instance, are eager for globalization to catch up with their needs.

The event was also seen as a vehicle for improving South Korea-Japan relations and, all things considered, seems to be serving this purpose. However, it will take more than this effort to overcome years of animosity. In fact, many South Koreans accused Koizumi of exploiting the event by choosing to visit the Yasukuni Shrine this year prior to the opening ceremonies (rather than in August as he did last year) in hopes that the need for a smooth World Cup would somehow temper South Korean reactions -- it didn't. Fortunately for both countries, their national teams are not scheduled to meet in the first round.

The US is not so lucky. One can only hope that its match against South Korea on Monday is not decided by real (or perceived) bad officiating or that a US victory, should there be one, would not be the primary factor standing in the way of Korea's goal (if not expectation) to make it into the second round. Nationalistic fervor runs high during World Cup play.

The degree of nationalistic fervor being stimulated in South Korea and Japan is somewhat ironic, given that both teams are being guided by foreign coaches. A Dutchman, Guus Hiddink, coaches the South Korean team while a Frenchman, Philippe Troussier, guides Japan's.

It is unlikely, however, that Beijing will lecture its two Asian colleagues about this latest example of Western interference in Asian internal affairs. China's team is lead by Velibor Milutinovic, a Croatian Serb who successfully coached Mexico, Costa Rica, the US and Nigeria into World Cup finals in the past.

Isn't globalization grand?

Ralph A. Cossa is president and Jane Skanderup is director of programs of the Pacific Forum CSIS, a Honolulu-based non-profit research institute affiliated with the Center for Strategic and International Studies in Washington.
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