The formation of slums in Latin America went with the industrial boom and the rural exodus that culminated in the 1960s. The most destitute populations settled on the hillsides to build their own housing, in violation of current legislation. With limited access to essential services (water, electricity, transport, health and education), favela dwellers are excluded from the right to live with dignity in the city, and from the right to a satisfactory environment.
 

This phenomenon of social exclusion is at the root of the development of a parallel economy and numerous illegal drug, arms and prostitution trades, all of which are survival strategies for favela inhabitants. In Brazil and Colombia, criminal organizations exert strict control over the inhabitants of favelas, reinforcing their physical and social isolation.

More recently, the recognition of favelas by the public authorities and their cultural expansion throughout the world testify to a hope for the population who, behind their suffering, reveal an artistic sensibility, a spirit of community and mutual aid. The new generation is taking advantage of the boom in tourism and new technologies to set up a profitable business and rise socially, despite the barriers imposed by such an environment.