Literacy is traditionally understood as the ability to read, write, and use arithmetic. The modern term’s meaning has been expanded to include the ability to use language, numbers, images, computers, and other basic means to understand, communicate, gain useful knowledge and use the dominant symbol systems of a culture. The concept of literacy is expanding in OECD countries to include skills to access knowledge through technology and ability to assess complex contexts. A person who travels and resides in a foreign country but is unable to read or write in the language of the host country would also be regarded by the locals as being illiterate.

The key to literacy is reading development, a progression of skills that begins with the ability to understand spoken words and decode written words, and culminates in the deep understanding of text. Reading development involves a range of complex language underpinnings including awareness of speech sounds (phonology), spelling patterns (orthography), word meaning (semantics), grammar (syntax) and patterns of word formation (morphology), all of which provide a necessary platform for reading fluency and comprehension.

Once these skills are acquired, the reader can attain full language literacy, which includes the abilities to apply to printed material critical analysis, inference and synthesis; to write with accuracy and coherence; and to use information and insights from text as the basis for informed decisions and creative thought. The inability to do so is called illiteracy or analphabetism.