A study was conducted to examine the literature on literacy and adult basic education and to identify various issues, trends, problems, possible solutions, and basic principles that might guide programs and policies in adult literacy and basic education in Canada. More than 120 documents were examined, raising such issues as what is literacy and functional literacy?; what is the purpose of literacy education?; what is the role of government in literacy education?; what is necessary for effective programming?; and what issues and solutions have been proposed? Some of the conclusions drawn by the survey were the following: (1) much of the discussion about illiteracy and functional literacy centers on the meaning of these terms, especially in the Ontario and Canadian context; (2) the goals and objectives of literacy programs must take into account the life circumstances of the participants and strive to move participants out of poverty; (3) participants' viewpoints and life-styles must be considered in planning and implementing programs to reach goals; (4) training of adult literacy teachers is needed; (5) research in literacy is valuable and more is needed; (6) government-produced materials need to be written in simpler language; and (7) since the process of literacy education is a complicated one, policy choices must be made and strategies implemented to link the public, private, and educational sectors in programs to combat illiteracy. (KC)