Problem 1: Housing
There are over half a million street dwellers, over a million who live in favellas and another million live in local authoriy housing in the city of Rio De Janeiro which is located in south-east Brazil.
There are over 600 favellas in Rio De Janeiro and the largest one is Rocinha which contains over 100,000 people.
The houses are built with any materials that can be found and materials such as corrugated iron, wood and broken bricks are often used.
Most favellas are built on hills and as a result, when it rains, flash floods and mudslides carry the weak houses away and can result in death - in 1998 one such incident claimed the lives of over 200 people.
Problem 2 - Crime
Favellas are seen as areas that are associated with organised crime, violence and drug trafficking.
As a result of these crime rates affluent people now move out of Rio De Janeiro and into areas such as Barra Da Tijuca - they think it is cleaner and safer.
When entering the beach, tourists, are warned not to take valuables or wear jewelllery.