Final answer:
Brazil moved its capital to Brasilia in the highlands to spur development and encourage settlement in the interior regions, as part of a strategy for economic growth and to distribute the population more evenly across the country.
Step-by-step explanation:
The reason Brazil moved the capital to the highlands specifically to Brasilia was to encourage development and settlement in the highlands. When Brasilia was created in 1960 as a forward capital, it had the objective of shifting the country's focus from the coastal areas of the south towards the interior. This move was part of a larger strategy to develop the interior for economic gain and to balance out the population distribution, which was heavily concentrated on the coast.
This decision has resulted in significant rural-to-urban migration, with many people coming to Brasilia in search of opportunities, which also led to the development of favelas similar to those in Rio de Janeiro and São Paulo. Although some parts of the interior, including the Amazon, are still developing and face environmental challenges, the creation of Brasilia marked a pivotal point in Brazil's urban and regional planning.