Skip to main content
Home

Main navigation

  • Centers & Programs
    • Centers
      • Center for Energy Studies
      • Center for Health and Biosciences
      • Center for the Middle East
      • Center for Public Finance
      • Center for the U.S. and Mexico
      • McNair Center
      Center for Energy Studies
      Providing new insights on the role of economics, policy and regulation in the performance and evolution of energy markets.
      More Details
      The globe at night, lights in populated areas illuminated
      Center for Health and Biosciences
      Advancing data-based policies that promote health and well-being in the U.S. and around the world.
      More Details
      Female healthcare worker lifts finger to press digital buttons featuring topical iconography
      Edward P. Djerejian Center for the Middle East
      Developing pragmatic policy approaches to the region’s enduring political, economic and societal concerns.
      More Details
      Topographic map of Middle East
      Center for Public Finance
      Delivering research and analysis on the effects of major U.S. fiscal policies.
      More Details
      Stack of coins with mathematical figure overlays
      Center for the U.S. and Mexico
      Strengthening the binational relationship by addressing major concerns on both sides of the border.
      More Details
      Textured flags of America and Mexico
      McNair Center for Entrepreneurship and Economic Growth
      Providing actionable policy analysis and recommendations that aim to expand the economy through private enterprise.
      More Details
      Professionals gather around a large table with laptops, printed documents and coffee cups for a business meeting
    • Programs
      • China Studies
      • Drug Policy
      • International Economics
      • Presidential Elections
      • Religion & Public Policy
      • Science & Technology Policy
      • Space Policy
      China Studies
      Analyzing the influence of the transnational circulation of people, technologies, commodities and ideas in China.
      Read More
      Person walks alongside large banner with Chinese characters
      Drug Policy
      Pursuing research and open debate to develop pragmatic drug policies based on common sense and driven by human rights interests.
      Read More
      Marijuana
      International Economics
      Studying timely issues in global economic policy as well as developmental policy in foreign countries.
      Read More
      International paper currencies stacked together, showing range of colors and styles
      Presidential Elections
      Offering nonpartisan analysis of elections to better understand the changing dynamics of presidential campaigns.
      Read More
      An assortment of campaign buttons from a variety of US elections and political pursuits are displayed in a collage
      Religion and Public Policy
      Exploring how religion and cultural factors interact with public policy issues.
      Read More
      A worn path stretches between rows of olive trees
      Science and Technology Policy
      Addressing a broad range of policy issues that affect scientists and their research.
      Read More
      A scientist picks up test tubes from a rack.
      Space Policy
      Focusing on U.S. space policy and the future of space travel.
      Read More
      The International Space Station (ISS) orbits the Earth at sunrise
  • Events
    The front of Baker Hall, from across the plaza, with fountain in foreground
    Center for Health and Biosciences | Roundtable
    Tue, Feb. 07, 2023 | 4:30 pm - 5:30 pm
    Baker Briefing: Addressing the Maternal Mortality Crisis in Texas See Details
    Child at border plays in the dirt with superhero toy
    Center for the U.S. and Mexico
    Thu, Feb. 23, 2023 | 5 pm - 7:30 pm
    Immigration Reform and the Impact on Children: A Town Hall Discussion See Details
    Tile mosaic over an entrance to Baker Hall that reads "A Bridge Between the World of Ideas and the World of Action"
    Center for the U.S. and Mexico | Edward P. Djerejian Center for the Middle East
    Wed, Mar. 15, 2023 | 5:30 pm - 7:30 pm
    Charting Paths Forward on Immigration Reform See Details
  • Experts
    • Biomedical Research
    • Child Health
    • China
    • Conflict Resolution in the Middle East
    • Domestic Health Policy
    • Drug Policy
    • Energy
    • Entrepreneurship and Economic Growth
    • Global Health
    • Health and Biosciences
    • Human Rights and Refugees
    • International Economics
    • Islam and Politics
    • Latin American Energy
    • Middle East
    • Political Economy of the Arab Gulf
    • Presidential Elections
    • Public Finance
    • Religion and Public Policy
    • Science and Technology
    • Space Policy
    • Texas Politics
    • U.S. and Iran
    • U.S. and Mexico
    • See All Experts
    • Experts in the News
  • Support
    • Join the Baker Roundtable
      Join the Baker Roundtable
      Learn more about the Baker Institute’s membership forum, which supports the mission of the institute and offers members exclusive access to experts and events.
      Read More
      RT
    • Major Gifts
      Major Gifts
      Major gifts provide the funds necessary for the Baker Institute to explore new areas of study and research, and expand current programs.
      Read More
      Wallace S. Wilson meeting with former British Prime Minister Tony Blair
    • Endowments
      Endowments
      Endowment gifts provide the Baker Institute with permanent resources that support research programs, fellows and scholars.
      Read More
      Pictured from left are William Martin, Katharine Neill Harris, Ambassador Edward Djerejian, Alfred C. Glassell, III, and Pam Lindberg
    • Planned Giving
      Planned Giving

      Plan a gift that will ensure lasting, meaningful support for policy programs important to you.

       

      Read More
      meeting
    • Corporate Support
      Corporate Support
      Corporations can become involved with the institute in a number of ways and see the benefit from the research conducted by our fellows and scholars.
      Read More
      Wide shot of the Doré Commons during a Shell Distinguished Lecture Series event featuring Wim Thomas
  • About
    • People
      People
      Learn more about the Baker Institute's leadership and get contact information for the administrative staff.
      Read More
      Secretary James A. Baker, III, stands with a portion of the Berlin Wall, outside of Baker Hall
    • Student Opportunities
      Student Opportunities
      Through the internships on campus and beyond, Rice students can explore careers in public policy, or simply become better informed about important issues of the day.
      Read More
      Amb. Edward P. Djerejian speaks with students outside Baker Hall
    • Annual Report
    • Blog
    • Contact
      Contact Us
      Complete a form for event, media or other inquiries, and get directions and parking information for the Baker Institute.
      Read More
      The front of Baker Hall, from across the plaza, with fountain in foreground
  • Contact
  • Research
    • Economics & Finance
      Economics & Finance
      Read More
    • Energy
      Latest Energy Research
      Summary on Latest Energy Research
      Read More
    • Foreign Policy
      Foreign Policy
      Read More
    • Domestic Policy
      Domestic Policy
      Read More
    • Health & Science
      Health & Science
      Read More
    • All Publications
  • Facebook
  • Youtube
  • Twitter
  • Linkedin
  • Economics & Finance
  • Energy
  • Foreign Policy
  • Domestic Policy
  • Health & Science
  • All Publications
Latin America Initiative | Blog

The Empty Homes of Rio’s 2016 Olympics

January 14, 2016

Table of Contents

Share this Publication

  • Facebook
  • Twitter
  • Email
  • Linkedin
  • Print This Publication

By Anna Figueroa, Latin America Initiative program intern

The 2016 Summer Olympic Games in Rio de Janeiro, Brazil have become a highlighted controversy that plays into the country’s ongoing societal tensions. The Brazilian people expressed their anger towards the federal government’s major spending leading up to the 2014 World Cup, when billions of dollars went into preparation for the tournament and not toward social services such as education and health care. The same rage is now palpable in response to the Olympics and the government’s obvious bid for international fame and recognition.

Once the world’s most promising emerging power, Brazil is quickly spiraling into a deep recession — the GDP for 2015 is expected to have decreased by 3.7 percent, and inflation reached 10 percent. While attempting to deal with the economic crisis, President Dilma Rousseff is now fighting accusations that she mishandled public accounts, and opposition leaders have called for her impeachment amid political scandals (many question her ignorance of the Petrobras corruption, considering she had been the chairwoman of the company). The combined tensions of persistent economic inequality and the recession have resulted in a dreary atmosphere leading up to the games, a mood depicted by the abandoned houses, apartment complexes and real estate developments across Rio.

In preparation for both the World Cup and the Olympics, the Brazilian government began destroying favelas (slums) to make room for new development. Thousands of homes have been torn down with little or no prior notice. When residents returned to their communities to see their houses being taken apart, resistance against authorities has provoked violent reactions from both sides. The government claims to have relocated or reimbursed residents, but this is oftentimes insufficient. Either the payment is too low for a new house, or the location is in the periferia (city outskirts) and too far to commute to work. Rio authorities promise to only demolish 3,000 homes, but many residents assume the number will be much higher. Amnesty International and the special rapporteur of the United Nations Human Rights Council both have spoken out against Brazil’s eviction policies. The state claims to be removing the houses due to structural hazards or for planned developments that may never be constructed. If construction is completed, however, the developers are confronted with a dying market.

The Brazilian housing market boom of the last decade has become a distant memory. Real estate in Rio de Janeiro was especially profitable, but now abandoned construction projects decorate the city’s skyline. The government’s removal of favela residents is not solely motivated by improving the city’s general well-being. The city is more interested in replacing untitled and untaxable property with structures that will contribute to city revenue. However, the Olympic residential developments built in their place captured little interest. The New York Times cited the painful failure of the Olympic Village, where only 230 of the property’s 3,604 apartments have been sold a year after opening sales. Although economic slumps are commonly seen in cities hosting the Olympics, Rio is the first example where the economic downturn has come before the games. Rio also has lost 48,500 jobs — one of the highest jobs decline among Brazilian cities — due to graft scandals involving both the construction industry and the national oil company, Petrobras.

This real estate slump and its origins are not only a commentary on economic decline; it illustrates the government’s priorities in development. The actual cost of the Olympics has been trimmed to a budget of 7.4 billion reais ($1.9 billion USD) in order to avoid using public funds, which is a small percentage of the entire Brazilian economy. What was supposed to boost the morale of the city and the country has resulted in quite an opposite reaction. The idea of putting more money into luxury high-rises and international “show-case” events instead of investing in public goods and infrastructure exemplifies politicians’ short-term fixes and short-term benefits, which leads to long-term problems. Increasing the quantity of expensive housing is flooding the market and preventing the expansion of affordable housing, and the relocation of favela residents to the periferiafurthers the division of social classes. The principal idea of developing Rio de Janeiro for extra revenue would not be necessary if the government was not prioritizing major projects or other ventures in addition to governing corruptly.

Voices of the Americas is a space for Americas Project fellows to share their insights into events unfolding in their home countries and in the region as a whole. The fellows' essays will also focus on economic development, institution building, democracy and the rule of law.

Click here for previous entries to Voices of the Americas.

  • Print This Publication
  • Share
    • Facebook
    • Twitter
    • Email
    • Linkedin
  • Facebook
  • Youtube
  • Twitter
  • Linkedin
  • Donate Now
  • Media Inquiries
  • Membership
  • About the Institute
  • Rice.edu
Contact Us

6100 Main Street
Baker Hall MS-40, Suite 120
Houston, TX 77005

Email: bipp@rice.edu
Phone: 713-348-4683
Fax: 713-348-5993

Baker Institute Newsletter

The email newsletter of Rice University's Baker Institute for Public Policy provides a snapshot of institute news, research and upcoming events.

Sign Up

  • © Rice University's Baker Institute for Public Policy
  • Web Accessibility
  • Privacy Policy