History

Guanabara Bay, future site of the city, was reached by Portuguese explorers in an expedition led by Portuguese explorer Gaspar de Lemos on January 20, 1502; hence Rio de Janeiro, "January River". There is a legend that the mariners named the place thus because they thought the mouth of the bay was actually the mouth of a river, but no experienced sailor would make that mistake. At the time, river was the general word for any large body of water.

Unofficial European presence in the area began not long after. In 1519 when Ferdinand Magellan resupplied his ships in the bay, French smugglers were already using the bay as a post for smuggling brazilwood. When French naval officer Nicolas Durand de Villegaignon arrived in 1555 with a fleet of two ships and 600 soldiers and colonists, he founded the first permanent European settlement in the area. The colony was referred to as "France Antarctique". The colonists consisted of mainly French Huguenots and Swiss Calvinists. Villegaignon left in 1557 after contentions with some of the colonists.

The actual city was founded in March 1, 1565, by Portuguese knight Estácio de Sá, who called it São Sebastião do Rio de Janeiro (St Sebastian of the January River), in honour of King Sebastian I of Portugal. For centuries, the settlement was commonly called São Sebastião – or even 'Saint Sebastian' – instead of the currently popular second half of its name. The city was founded as a base from which to invade the French settlement. They succeeded in 1567 and the French were expelled. Later, São Sebastião was frequently attacked by pirates and privateers, especially by then enemies of Portugal, such as the Netherlands and France.

The exact place of Rio's foundation is at the foot of Pão-de-Açúcar (Sugarloaf Mountain). Later, the whole city was moved within a palisade on top of a hill, imitating the medieval European defence strategy of fortified castles – the place has since then been called Morro do Castelo (Castle Hill). Thus, the city developed from the current centre southwards and then westwards (with large parts built over reclaimed land); an urban movement which continues today.

In the late 16th century the Portuguese crown began treating the village as a strategic location for the Atlantic transit of ships between Brazil, the African colonies and Europe. Fortresses were built and an alliance was formed with nearby native tribes to defend the settlement against invaders – Rio's neighbour, Niterói, for instance, was founded by a native chief for the purpose of supporting defence, the Tamoio Indian Araribóia. Sugar cane was the first industry in the area. First native, and later African, slaves were used for manual labor. Eventually the industry dwindled as higher quality sugar cane from northern Brazil became more available.

Until early in the 18th century the city was threatened or invaded by several – mostly French – pirates and buccaneers, such as Jean-François Duclerc and René Duguay-Trouin. After 1720, when the Portuguese found gold and diamonds in the neighbouring captaincy of Minas Gerais, Rio de Janeiro became a much more useful port for exporting wealth than Salvador, Bahia, which is much farther to the north. In 1763, the colonial administration in Portuguese America was moved to Rio.

The city remained primarily a colonial capital until 1808, when the Portuguese royal family and most of the associated Lisbon nobles, fleeing from Napoleon's invasion of Portugal, moved to Rio de Janeiro. The kingdom's capital was transferred to the city, which, thus, became the only European capital outside of Europe. As there was no physical space or urban structure to accommodate hundreds of noblemen who arrived suddenly, many inhabitants were simply evicted from their homes.

When Prince Pedro I proclaimed the independence of Brazil in 1822, he decided to keep Rio de Janeiro as the capital of his new empire, but, by then, the city region was gradually losing importance – economic and political – to São Paulo. Rio continued as the capital of Brazil after 1889, when the monarchy was replaced by a republic.

Until the early years of the 20th century the city was largely limited to the neighbourhood now known as the historic Downtown business district (see below), on the mouth of Guanabara Bay. The city's centre of gravity began to shift south and west to the so-called Zona Sul (South Zone) in the early part of the 20th century, when the first tunnel was built under the mountains located between Botafogo and the neighbourhood now known as Copacabana. That beach's natural beauty, combined with the fame of the Copacabana Palace Hotel, the luxury hotel of the Americas in the 1930s, helped Rio to gain the reputation it still holds today as a beachy party town (though, this reputation has been somewhat tarnished in recent years by favela violence resulting from the narcotics trade).

Plans for moving the nation's capital city to the territorial centre had been occasionally discussed, and when Juscelino Kubitschek was elected president in 1955, it was partially on the strength of promises to build a new capital. Though many thought that it was just campaign rhetoric, Kubitschek managed to have Brasília built, at great cost, by 1960. On April 21 that year the capital of Brazil was officially moved from Rio de Janeiro to Brasília.

Between 1960 and 1975 Rio was a citystate (such as Vienna (Austria), Hamburg (Germany), or Washington, D.C. (USA)) under the name State of Guanabara (after the bay it borders). However, for administrative and political reasons, a presidential decree known as A Fusão ("The Fusion") removed the city's federative status and merged it with the state of Rio de Janeiro in 1975. Even today, some Cariocas advocate the return of municipal autonomy.