The study is a description of the activities undertaken within the framework of the work-oriented adult literacy pilot project in Iran, an evaluation of its first measurable results, and an examination of the problems of functional literacy in the light of the Iranian experiment. The first chapter traces the efforts of the Iranian authorities over the years in extending literacy from the privileged to the entire population and describes the aims of the pilot project. The second chapter is devoted to the problems of functional literacy training and the fuller utilization of human resources, defining the frame of reference for educational action and the noneducational conditions which govern it. Chapter 3 discusses the purely educational level of integration and the development of a methodology with tables, illustrating programs, training sequences, and teaching materials. Chapter 4 deals with the confrontation between the old and the new, and the development of an evaluation program. The final chapter raises questions related to future developments, the concept of life-long adult education, and the international consequences of the Iranian experiment. An appendix includes a bibliography and project documents. (MW)