In the United States, which has an estimated literacy rate of 97% (so not directly investigated by the CIA either), literacy is generally defined as the ability to read well enough to decipher the want ads, file a simple tax return, write a simple letter (both business and social), fill out a job application, apply for and maintain a checking account, and get a driver's license.

We are talking very basic skills here.

Literacy as required by employers can range from this low level, including the mastery of an employee manual, to the higher level of broad cultural literacy, including reading and understanding the average newspaper (written at a 6th or 7th grade level), or to the very high level of research and analysis of written materials. Recreational reading, a beneficial activity, is not required beyond the level that allows the individual to understand cultural touchpoints. This often means that one can see the movie. (Did you think that Fagin escaped at the end of Oliver Twist? Read the book!)

Voting requires the low-level literacy skills. It's presumed that the ability to learn about the issues and candidates is available to non-literate or low-literate citizens through community discussions, which, more and more, means the electronic media. Which means that a lot of people are voting on the basis of the opinions of Ted Koppel and Rush Limbaugh, but that's another, scarier discussion.

The literacy rate of North Korea, based on the low-level skills that define literacy, may actually be correct. After all, their assortment of things to read doesn't have to be very broad, and writing skills need only be adequate.

People have a tendency to think of their own situation as hovering around average. Not necessarily. Don't judge general literacy skills by the skills you need and have, Tom. The average, both in the US and elsewhere, is quite a bit below that, and the adequate is even lower.