This paper highlights the economic and social cost of illiteracy to the global economy. It
discusses the causes and issues surrounding illiteracy, the direct link between poverty and
illiteracy. Illiteracy means the lack of Reading, Writing and Arithmetic (3R’s) skills. It is the lack
of minimum capabilities needed to function effectively in a society. The paper examines the cost
of illiteracy to the global economy which is estimated at 1.19 trillion dollars; and the effects of
illiteracy are very similar in developing and developed countries. The illiterate people trapped in
a cycle of poverty with limited opportunities for employment or income generation and higher
chances of poor health, turning to crime and dependence on social welfare. Therefore, illiteracy
is a curse to humanity and socio-economic development.