They are doing that right here in Vancouver right now (in prep for the 2010 Olympics). They're a bit more subtle and "polite" about it than the Chinese government, but the end result is quite similar. EDITED TO ADD: "We," in fact, are doing that. It's unfair to say that only the governments and officials are doing that. The rest of the population, of which I am part, is tolerating this tragedy without making much of a fuss. [/end of edit]
They did that surrounding the Montreal Expo (1967) and Olympics (1976) to build venues and also improve urban infrastructure (highway construction). Most people displaced were poor and tenants. The landlords sure got compensated, but what about the communities who were destroyed? Can't really compensate for that.
China has lots of examples to learn from in the past Olympic history...




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