Favela identity is in no way homogenous - each community is distinct - but they share many barriers to social development, and attitudes towards identity. These communities are today an extremely important and rich part of the cultural tapestry of the city of Rio.

'favela' was the name of a skin-irritating plant familiar to the soldiers returning from service in a bahian outpost - the settlers created a village on a hill they named 'morro da favela,' (favela hill).

this hill was later renamed 'morro da providência' (providence hill), the name still is in use for the community, which is officially recognized as the first favela in rio and in brazil.  

the name 'favela' was consequently kept and the term used to refer to all underprivileged and undeveloped urban areas similar to this first settlement, independently of how they came to exist.