“Economic Growth, Poverty, Populism, and Democracy”

1. The Freeman Spogli Institute for International Studies / CDDRL Stanford UniversityFrank E. and Arthur W. Payne Distinguished Lecture Series2008 “Economic Growth, Poverty, Populism, and Democracy” “Can The Poor Afford Democracy? : A Presidential Perspective.” (Final Lecture) STUDY/BOOK PROJECT Alejandro Toledo Ph.D. President of Peru, 2001-2006 President, Global Center for Development and Democracy (GCDD) Payne Distinguished Visiting Lecturer (CDDRL) Freeman Spogli Institute for International Studies, Stanford University Distinguished Fellow, Center for Advanced Studies in the Behavioral Sciences (CASBS), Stanford University

2. Political Democracy Election Day APEC Chile 2004 Elected Presidents With power in their hands.

3. Economic Growth South American Interoceanic Highway Export Agro Industry

4. Faces Of Poverty Early Malnutrition Lack Of Drinkable Water Child Labor

6. Social Unrest: Counterproductive For Growth

7. Authoritarian Populism

8. Poverty and Democracy Democratic Governability Economic Growth Democratic Institutions Poverty and Exclusion Reduction Premises: We cannot redistribute poverty: The final objective is not that everyone is equally poor. Economic growth is an indispensable (but insufficient) component for any poverty and exclusion reduction strategy. Economic, social, political and legal stability are indispensable to attract national and foreign capital investment. Within a market economy, there is a need for deliberate social policies and specific projects targeted to the extremely poor. There is a high need for accountability on the part of governments at different levels.

9. Conceptual Framework • Conventional Wisdom Economic Growth Poverty & Inequality Reduction Income Levels The conventional wisdom among most development economists and policy makers is that economic growth and increases in income levels are the key, and at times the only crucial, components for any poverty reduction strategy. The literature on this is abundant in Latin America as well as in USA, And Europe. Less examined is the reverse proposition: That high levels of poverty and social exclusion may in fact constitute real impediments to achieve the needed social, economic, political, and legal stability for sustained economic growth and democratic governability in the region. This development process perspective recognizes the existence of “vicious circles” in which low economic growth accentuates poverty and high poverty, in turn, results in a low economic growth and fragile governability. This study/book seeks to examine the ways and means to convert this “vicious circle” into “virtuous circle” in which poverty, exclusion/inequality reduction, and sustained economic growth could support each other and strengthen democracy, thus preventing the surge of irresponsible populism and destabilizing forces which undermine sustainable development.

10. Other Manifestations of Poverty • Unemployment • Infant Mortality • Malnutrition • Lack of access to quality health and education • Vulnerability to economic crisis • Ethnic social exclusion

11. Indigenous People: New Challenges for the 21st Century Democracies • Increase in access to quality health and education • Assure effective social inclusion (particularly the indigenous population) • Indigenous people of Latin America emerge with old inequalities diverse • realities and new obligations for 21st century democracies. • Regions impatient with the democracy • High inequalities • Lack of availability of jobs, • Rural, urban contrasts. • Inclusion with mutual respect for cultural diversities.

12. From the Analysis and the Lectures To the Actions

13. Social Agenda for Democracy in Lat. America Social Indicators [Demographics] Sources: World Bank, UN, IDB, Academic Institutions

14. Social Indicators [Education] Sources: World Bank, UN, IDB, Academic Institutions

15. Social Indicators [Health] Sources: World Bank, UN, IDB, Academic Institutions

16. Social Indicators [Housing] Sources: World Bank, UN, IDB, Academic Institutions

17. Social Indicators [Employment] Sources: World Bank, UN, IDB, Academic Institutions

18. Social Indicators [Salaries] Sources: World Bank, UN, IDB, Academic Institutions

19. Social Indicators [Poverty/Income Distribution] Sources: World Bank, UN, IDB, Academic Institutions

20. Social Indicators [Economy] Social Indicators [Technology] Sources: World Bank, UN, IDB, Academic Institutions

21. Social Indicators [Health/Nutrition/Population] Sources: World Bank, UN, IDB, Academic Institutions