At a time when some 24% of the Brazilian population of 182 million are functionally illiterate, the author shows how illiteracy is concentrated in traditionally poor and disadvantaged social and ethnic groups as well as in certain regions of the country. He surveys the changes in legislation, policies and attitudes relating to literacy over the past few decades and describes how literacy is increasingly seen as a continuous process rather than a short-term, low-cost intervention. While there is still a lack of a broad, coordinated policy and adequate funding in this area, and while the challenges remain formidable, the author concludes that Brazil is moving slowly in the right direction.