Brazil has ‘managed’ its Favela population in Rio de Janeiro from 1972 to 1976 in very similar practices that compare to today’s. Eradication and removal of the physical existence of the Favelas and its population was practiced by Rio de Janeiro. Rio is home to 11.2 million and there are over 600 different Favelas within this city and outskirts. The paper reviews the public policy practiced by the state under dictatorship from 72-76. Favelas were removed and relocated to “embryo houses’ and apartments outside the city. The idea was to eliminate and take advantage of the high price of land in the occupied areas. This program was also accompanied with access to a housing finance system. The BNH or National Housing Bank provided served as an agent of the Housing Finance System. Ultimately the program offered homes to favela dwellers charging the new urban residents rents that were originally 25% of family income then reduced to 19%. The policy did not take into account the fact that removal of the favelados to the periphery wouldn’t allow for the people to meet the economic burden. Being removed meant being removed from familiar sources of work and odd jobs. The program ended with massive default on an average of 74%. The favelas were removed (from the south zone where land prices were high) and the population was met with yet again economic difficulty with no real address of the core issue of poverty, access to wealth.
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