The inclusion of favela populations in the process of national democracy meant that in the 1940s a policy shift occurred, and the complete eradication of favelas was no longer viewed as a viable option.

Governmental organizations looked to develop strategies to improve conditions and improve channels of communications between the state and electorate - resulting in the creation of the Departamento de Habitação Popular in 1946 (Department of Popular Housing); the Serviço Especial de Recuperação das Favelas e Habitações Anti-Higiênicas of 1956 (Special Service for the Recovery of Favelas and Unhygienic Housing); and the Coligação dos Trabalhadores Favelados do Distrito Federal (Coalition of Favela Workers of the Federal District).  

Residents of favelas were encouraged to participate in committees and other representative bodies, to empower them as political actors.