The whole society doesn't have to be literate for there to be literature. All you need is a wealthy literate class which has the time to read. That certainly exists in the Lunar Empire, probably Kralorea and maybe elsewhere. There won't be much because books have to be copied by hand or magic unless you can get hold of a Mostali printing press but we've got Mallory and Chaucer still extant from a similar period. Is that popular literature? depends on your definition I suppose.
-- Donald Oddy http://www.grove.demon.co.uk/
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