Rio de Janeiro has been chosen by the International Olympic Committee (IOC) to host the 2016 Olympic Games. The Brazilian capital beat off strong competition from Madrid, Tokyo and Chicago, despite superstar backing from Barack and Michelle Obama for the American city. IOC veterans say it was the closest contest in recent memory and many see Rio as the braver choice. It is the first time the Games will take place in South America, bringing huge prestige and billions of pounds to Brazil's economy.