This report analyzes the initial results of UNESCO's Experimental World Literacy Programme and makes recommendations for future action. The meaning of functional literacy is discussed, and pilot projects in twelve countries are briefly described. The analysis reveals that the programme has fallen seriously behind schedule, that the number of adult illiterates so far affected is far short of the target, and that not enough experimental work has been done on methods and materials. The recommendations concern mainly the experimental projects, their relevancy and evaluation, and their link to national literacy programmes. (CL)