Under the auspices of the International Reading Association, an evaluation was conducted of Rural Education and Development (READ) program of creating community libraries in Nepal. READ set out to address the high rates of illiteracy and poverty in Nepal through the development of these libraries. To examine READ's approach, a team of international researchers conducted an evaluation to determine the efficacy of READ's participatory approach on literacy development and empowerment. Based on evidence from field notes, interviews, focus groups, and videotapes evaluators found strong support for the benefits of community libraries in providing access to literacy and improving economic and social development for the Nepalese citizens. READ libraries are promoting a "book culture" in Nepal by helping communities build upon their assets. Such an approach to libraries may effectively inform literacy efforts in the United States as well as in communities throughout the world. (Contains 4 tables and 5 figures.)