about 8.5 percent of all residents living below the poverty line. As a result, inhabitants of favelas are often discriminated against for living in these areas and often experience inequality and exploitation. This stigma that is associated with people living in favelas can lead to discrimination when trying to find jobs. The Brazilian government has made numerous attempts in the 20th century to improve the nation's urban poverty problem.
One solution was the eradication of the favelas and favela residents that occurred during the 1970s while Brazil was under military governance. These favela eradication programs compulsorily removed over 100,000 citizens and placed them in public housing projects or made them return to the rural areas that many emigrated from. Another effort to handle urban poverty came by way of gentrification. The government wanted to enhance the favelas and mix them into the inner city with the newly urbanized upper-middle class. While these "upgraded favelas" became steadier, they began to attract members of the lower-middle class, pushing the past favela dwellers onto the streets or outside of the urban center and into suburban communities, away from opportunity and economic development. In Rio, the majority of the homeless population is black, and a part of that can be credited to favela gentrification and dislocation of those in extreme
poverty. The cocaine trade has negatively affected Rio, which tend to be ruled by drug lords. The very common shoot-outs between traffickers and police and other criminals, as well as various illegal activities, lead to excess murder rates of 40 per 100,000 inhabitants in the city of Rio and much higher rates in some Rio favelas.[20] Traffickers guarantee that individual residents can assure their own safety through their actions and political connections to them. They do this by preserving order in the favela and giving and receiving mutuality and respect, thus creating an atmosphere in which critical segments of the local population feel secure despite continuing high levels of violence. Drug use is very concentrated in these parts run by local gangs in each highly populated favela. Drug deals and use happen mostly at night when many favelas host their own dance party, where a variety of social classes can be found. These drug sales in Rio make up as much as $150 million dollars per month, according to official evaluations released by the Rio media. Despite the attempts to cleanse Rio or favelas, the poverty amongst the population grew at a fast pace as well as the modern-day favelas that house them in the end of last century. This is a phenomenon called “favela growth.” In 1969, there were roughly about 300 favelas in Rio, today that number has been multiplied by two. In 1950, only 7 percent of Rio’s population lived in favelas and today, this number has grown to 19 percent. According to national census data, from 1980 to 1990, the total growth rate of dropped by 8 percent, but the favela residency rate increased by 41 percent. After 1990, Rio’s growth rate stopped at 7 percent, but the favela population increased by 24 percent. Yet, a report released in 2010 by the United Nations shows that Brazil has reduced its slum population by 16 percent, now corresponding to about 6 percent of the general population of the nation. Though, in recent years, urban migration has become less appealing due to investments in the rural areas across Brazil, which has upgraded the living conditions of rural workers. Other investments in industries, infrastructure, tourism and social aid are helping to extend the wealth. All of this has contributed to the fast economic growth Brazil has been experiencing. The poor could soon enter the middle class and the rate of poverty may fall sharply. The contrasts between Addis Ababa and Rio are certainly visible. Though Addis Ababa is peaceful and Rio is violent, they are both two areas that suffer from deprivation and everyday negligence. While there have been strides to improve the living conditions of people in these cities, the perils of slum life remain. For many, their current lives and futures are bleak.