The name favela was first used at the end of the 19th century after soldiers on the Canudos campaign in Bahia set up their guns on a hill called the Morro das Favelas. The hill was so-called because of type of nettle that grew there. The soldiers became known as favelados. When they returned to Rio after the campaign, the soldiers built their homes on the Morro da Provid?ncia, but the favela nickname stuck.

In time any temporary settlement acquired the name favela and, as urban and rural poor alike strove to make it in the city, many people stayed intially in the shanties before moving to better accomodation. Many of course, were unable to better themselves. In the 1970s and 1980s, there were some attempts to improve conditions in the favelas and residents, given assurance that they would not be forcibly removed, began to make their dwellings more permanent. Electricity and water supplies can be tapped into, usually illegally, but waste disposal and other basic facilities are rare.

One of Rio?s problems is that the favelas are in the middle of the city, not on the outskirts as in other metropolises. More than a million people live in these conditions. The huge number of entries and exits make them difficult to police. Because the shanties rub shoulders with the wealthier districts, it is easy for the young favelados to see the lifestyle of the young rich, and even mix with them on the beach. This can lead to envy which, for some leads to criminality. Most of the leading criminals are in their late teens, and they die young. Their motto is: live life to the maximum as fast as possible.

But how did the poor end up in the most desirable spots? This is due to a law that forebids building on the hills of Rio to protect the green mountains that make Rio such a beautiful city. Since favelas are illegal anyway they could be build here.

The municipality of Rio de Janeiro has 1,092,476 persons living in favelas. They form 18.9% of the population.