For many years, Rio de Janeiro has heldthe dubious distinction of being one of the world s mostbeautiful cities, and at the same time, one of the mostdangerous. This report is the story of Rio s attempt tobreak with history and establish a new kind of statepresence in its favelas. This report documents how life inthe favelas is changing as a result of the PolicePacification Unit (UPP) pacification effort, as seen throughthe eyes of favela residents themselves. This study used aqualitative, case-study approach and consisted ofobservations, focus groups, and key informant interviews infour favelas. The study fits into the broader territorialapproach to urban and social development that the World Bankhas been supporting in both the state and city of Rio deJaneiro, and for which the historical alliance betweenfederal, state and municipal governments in Rio has beencrucial. These projects have focused on strengtheningplanning and management of urban growth in the metropolitanregion, promoting the provision of affordable housing withaccess to infrastructure and service, and supporting theimplementation of a targeted, comprehensive socialdevelopment program for the urban poor. Under the socialdevelopment agenda, the Bank has been providing support toSocial UPP since its design stage, in 2010, throughtechnical assistance services to strengthen socialgovernance and territorially-based monitoring and evaluation.