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The Freeman Spogli Institute for International Studies / CDDRL Stanford University Frank E. and Arthur W. Payne Distinguished Lecture Series 2008 “Economic Growth, Poverty, Populism, and Democracy” “Can The Poor Afford Democracy? : A Presidential Perspective.” (Final Lecture)

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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

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Political Democracy

Election Day

APEC Chile 2004

Elected Presidents

With power in their hands.

slide3

Economic Growth

South American Interoceanic Highway

Export Agro Industry

slide4

Faces Of Poverty

Early Malnutrition

Lack Of Drinkable

Water

Child Labor

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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.

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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.

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Other Manifestations of Poverty

  • Unemployment
  • Infant Mortality
  • Malnutrition
  • Lack of access to quality health and education
  • Vulnerability to economic crisis
  • Ethnic social exclusion
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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.
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Social Agenda for Democracy in Lat. America

Social Indicators [Demographics]

Sources: World Bank, UN, IDB, Academic Institutions

slide14

Social Indicators [Education]

Sources: World Bank, UN, IDB, Academic Institutions

slide15

Social Indicators [Health]

Sources: World Bank, UN, IDB, Academic Institutions

slide16

Social Indicators [Housing]

Sources: World Bank, UN, IDB, Academic Institutions

slide17

Social Indicators [Employment]

Sources: World Bank, UN, IDB, Academic Institutions

slide18

Social Indicators [Salaries]

Sources: World Bank, UN, IDB, Academic Institutions

slide19

Social Indicators [Poverty/Income Distribution]

Sources: World Bank, UN, IDB, Academic Institutions

slide20

Social Indicators [Economy]

Social Indicators [Technology]

Sources: World Bank, UN, IDB, Academic Institutions

slide21

Social Indicators [Health/Nutrition/Population]

Sources: World Bank, UN, IDB, Academic Institutions