ALTER DATABASE script preventing restore of MySQL database in another server
The problem rests with the character set of INFORMATION_SCHEMA.ROUTINES
Run SHOW CREATE TABLE INFORMATION_SCHEMA.ROUTINES\G and you should see
mysql&gt; show create table information_schema.routines\G
*************************** 1. row ***************************
       Table: ROUTINES
Create Table: CREATE TEMPORARY TABLE `ROUTINES` (
  `SPECIFIC_NAME` varchar(64) NOT NULL DEFAULT '',
  `ROUTINE_CATALOG` varchar(512) NOT NULL DEFAULT '',
  `ROUTINE_SCHEMA` varchar(64) NOT NULL DEFAULT '',
  `ROUTINE_NAME` varchar(64) NOT NULL DEFAULT '',
  `ROUTINE_TYPE` varchar(9) NOT NULL DEFAULT '',
  `DATA_TYPE` varchar(64) NOT NULL DEFAULT '',
  `CHARACTER_MAXIMUM_LENGTH` int(21) DEFAULT NULL,
  `CHARACTER_OCTET_LENGTH` int(21) DEFAULT NULL,
  `NUMERIC_PRECISION` bigint(21) unsigned DEFAULT NULL,
  `NUMERIC_SCALE` int(21) DEFAULT NULL,
  `DATETIME_PRECISION` bigint(21) unsigned DEFAULT NULL,
  `CHARACTER_SET_NAME` varchar(64) DEFAULT NULL,
  `COLLATION_NAME` varchar(64) DEFAULT NULL,
  `DTD_IDENTIFIER` longtext,
  `ROUTINE_BODY` varchar(8) NOT NULL DEFAULT '',
  `ROUTINE_DEFINITION` longtext,
  `EXTERNAL_NAME` varchar(64) DEFAULT NULL,
  `EXTERNAL_LANGUAGE` varchar(64) DEFAULT NULL,
  `PARAMETER_STYLE` varchar(8) NOT NULL DEFAULT '',
  `IS_DETERMINISTIC` varchar(3) NOT NULL DEFAULT '',
  `SQL_DATA_ACCESS` varchar(64) NOT NULL DEFAULT '',
  `SQL_PATH` varchar(64) DEFAULT NULL,
  `SECURITY_TYPE` varchar(7) NOT NULL DEFAULT '',
  `CREATED` datetime NOT NULL DEFAULT '0000-00-00 00:00:00',
  `LAST_ALTERED` datetime NOT NULL DEFAULT '0000-00-00 00:00:00',
  `SQL_MODE` varchar(8192) NOT NULL DEFAULT '',
  `ROUTINE_COMMENT` longtext NOT NULL,
  `DEFINER` varchar(77) NOT NULL DEFAULT '',
  `CHARACTER_SET_CLIENT` varchar(32) NOT NULL DEFAULT '',
  `COLLATION_CONNECTION` varchar(32) NOT NULL DEFAULT '',
  `DATABASE_COLLATION` varchar(32) NOT NULL DEFAULT ''
) ENGINE=MyISAM DEFAULT CHARSET=utf8
1 row in set (0.01 sec)

In order to load the routines into your new system, you can filter it using grep
EXAMPLE
Suppose the script with the ALTER DATABASE is mydata.sql. Just do this
grep -v &quot;^ALTER DATABASE&quot; mydata.sql | mysql -uroot -p... 

This will bypass running the ALTER DATABASE.
Why is ALTER DATABASE included ? According to the MySQL Documentation

mysqldump output can include ALTER DATABASE statements that change the database collation. These may be used when dumping stored programs to preserve their character encodings. To reload a dump file containing such statements, the ALTER privilege for the affected database is required.

The database's character set and collation must have been CHARACTER SET latin1 COLLATE latin1_swedish_ci when you dumped from it. My guess is that the dump originated from a Windows version of MySQL .