Literacy is the ability to identify, understand, interpret, create, communicate and compute, using printed and written materials associated with varying contexts. Literacy involves a continuum of learning in enabling individuals to achieve their goals, to develop their knowledge and potential, and to participate fully in their community and wider society. Generally, literacy also encompasses numeracy, the ability to make simple arithmetic calculations. The concept of literacy can be distinguished from measures to quantify it, such as the literacy rate and functional literacy.

Source definition

UNESCO Institute for Statistics