Roundup: Rio gov't declares financial emergency 49 days before Olympics

Brazil's Rio de Janeiro state declared a state of public calamity on Friday afternoon due to a harsh economic crisis, less than two months before the beginning of the Olympic Games to be held in its capital Rio de Janeiro.

"There is total collapse in public security, healthcare, education, transportation and environmental management," acting State Governor Francisco Dornelles said in a statement on the government's official website.

"The relevant authorities must now adopt exceptional measures needed to maintain essential public services, until and during the Games," it said.

It is the first time that the state had to resort to such a drastic measure to overcome its financial problems.

Dornelles said the measure is caused by the "grave financial crisis" which prevents the state from fulfilling the commitments to hosting the Olympic and Paralympic Games.

The federal government has yet to comment the case, or offer any financial help to the state.

Experts say that giving money to Rio state may open a dangerous precedent, as other states are in a similar financial situation.

Rio state is the largest oil producer in Brazil, and the money to finance the Olympic and Paralympic Games came largely from the royalties paid to the state for its oil.

However, as oil prices dropped dramatically in recent years and Brazil's economic situation became more complicated, the state's capacity to afford hosting the Games started to be compromised.

Still, Dornelles said the Olympic and Paralympic Games will be successful. He says the state's dire financial situation will not delay the delivery of competition sites or compromise the Games in any manner.

But experts fear that hosting the Games would probably increase the burden on Brazilians.

By declaring a state of calamity, the government effectively authorizes that essential public services are "rationalized" in order to allow the government to have enough resources to host the Olympics.

Among the essential services are public healthcare, education and public security services.

Already teachers at state schools have been at strike for over three months, denouncing low wages and poor work conditions. Students have occupied schools and are also protesting for better conditions.

The state police, which fall under the state's administration, are notoriously underfunded and have a reputation for violence, especially in dealing with poor, brown and black citizens.

The state-administrated healthcare network is facing severe issues, such as structural problems in hospitals and a severe shortage of materials.

Though Rio has seen some improvement in the public transport system for the Games, the subway system's Line Four, regarded as crucial for transporting people to the competition arenas, may not be ready by the opening of the tournament.

The opposition accused Dornelles of having twisted priorities and caring only about the Games, while public servants aren't being paid and the situation at public universities and hospitals remains dire. Endi