Although increased urbanization has accompanied economic development, it also has created serious social problems in the cities. Even the wealthiest cities contain numerous shantytowns called favelas. Governed by a federative republic, Brazil grants broad powers to the federal government. The current chief of state and head of government is President Fernando Henrique Cardoso. Portuguese, the official language of Brazil, is spoken by all but a few isolated Amerindians, who retain their native languages, and immigrants who have not yet acquired proficiency in Portuguese.
Brazil is the only Portuguese-speaking country in South America.
Although there is no official religion in Brazil, the overwhelming majority of the population practice christiananity. Brazil has 651 Indian reservations totaling 94.6 million hectares.