Rio was the capital and dominant city of Brazil from 1763 to 1960. In the 1960s it lost its national administrative role to Brasília and its leading position as an economic center to São Paulo, but it is still many Brazilians' preferred city to visit. The inhabitants of the densely populated city are known as Cariocas (after a form of music and dance, a variation on the samba). Rio's lush forests, spectacular mountains, and sparkling beaches make it one of the most beautiful cities of the world.

Rio is an important seaport located along the maritime traffic routes that link the coastal cities of northeastern Brazil and the more economically developed areas of southeastern Brazil. Rio's role as national capital for almost 200 years meant that much foreign trade had to pass through the main customs office here, and the city acted as a distribution center for goods moving in and out of the country. Highways, railroads, and airlines link Rio to the rest of Brazil.

In addition to being a transportation hub, Rio is an important manufacturing and service center. The city contributes about one-tenth of the country's manufactures in the form of such goods as processed food, chemicals, pharmaceuticals, metal products, ships, textiles, clothing, and furniture. The service sector dominates the economy, however, and includes banking and other financial functions. Great numbers of people take part in Rio's colorful annual carnival, which occurs on the eve of Lent.Tourism and entertainment are also important aspects of the city's economic life.

Rio is in a magnificent natural setting between the mountains and the sea. From its beginnings as a fort and Portuguese colonial trading outpost, Rio has spread gradually to fill the space between the beaches and the mountains. The commercial core of the city is compact, centering on Avenida Rio Branco and Avenida Presidente Vargas. It includes a number of tall office buildings, and its streets are often clogged with motor vehicles and pedestrians. Major industrial areas are located in the less scenic north, which also includes large residential districts. The more fashionable residential zones are in the south, near such Atlantic beaches as Copacabana, Ipanema, and Leblon. Newly constructed tunnels and a bridge stretching 14 km (8.7 mi) across Guanabara Bay to Niterói have eased commuter traffic somewhat. The more famous landmarks of Rio are Sugarloaf Mountain, situated on a peninsula in Guanabara Bay, and the large statue called Christ the Redeemer, atop Corcovado Mountain. Many old churches and other colonial structures contrast sharply with the architecture of the period since the 1950s. Nearby recreational areas include the islands of Guanabara Bay and the mountain glens of the Tijuca Forest.

The leading universities of Rio include the Federal University of Rio de Janeiro (1920), the University of the State of Rio de Janeiro (1950), and the Pontifical Catholic University of Rio de Janeiro (1941). The city also contains the National Archives and the National Library. It has several publicly run museums, such as the National Museum of Fine Arts, and numerous private art galleries. Specialized museums include the Museum of Modern Art, the National Historical Museum, and the Museum of the Indian.

The first Portuguese explorers landed on the site as early as 1503, and in 1555 French colonists established a settlement here. Tupi Native Americans lived in the region at the time. The Portuguese expelled the French in 1567 and maintained a small community until the 18^th century, when a road to the gold mines of the inland Minas Gerais area made Rio a hub of transportation and wealth. The city also benefited when the Brazilian capital was moved here from Salvador (Bahia) in 1763. From 1808 to 1821 Rio was the seat of the exiled royal family of Portugal, and in 1822 it became the capital of the independent Brazilian Empire. In 1889 it was made the capital of the republic of Brazil. With the development of industries and commerce in the period after World War II (1939-1945), Rio attracted many people from the interior of Brazil who came seeking economic opportunities.