This report describes a low-cost, adaptable methodology for assessment of basic learning competencies (BLCs) in diverse cultural contexts. Following the introduction, section 2 provides a policy framework and covers priority populations; policy and assessment needs; challenges for policy-driven assessments; and questions policymakers might have. Section 3 is on defining BLCs addresses challenges; direct and indirect measures; conceptual overview of assessment matrix; and defining literacy, numeracy, and life skills. Section 4, on sampling and survey design, contains the proposed low-cost BLC household survey design, case illustrations, and principles for conducting a successful survey. Section 5 presents an assessment model for measuring BLCs. It addresses levels of BLC skills and reading, writing, numeracy, and life skills assessment. Section 6 discusses these challenges that arise and options that must be considered when implementation and capacity are applied to BLC assessment: design decisions and options for BLC surveys; recruiting and training personnel; test development, pretesting, and pilot studies; ensuring quality of data collection; data processing and analysis; and reporting and dissemination. Section 7 recommends follow-up steps. Appendixes include 12 tables; 27 references; sample items for assessment model; case studies of previous household surveys with components similar to the BLC model; and a sample survey form from the Zimbabwe household literacy survey. (YLB)