This bibliography presents and analyzes selected books, articles, and sample learning materials on functional illiteracy in industrialized countries that are available in the library of the Unesco Institute for Education. Entries covering emerging areas of research, descriptions and analyses of country experiences and steps toward international cooperation have been classified into five major sections, some of which are subdivided. The five sections deal with the following topics: (1) literacy and illiteracy in industrialized countries--problem assessment; (2) functional competencies and employment; (3) awareness and action--some country experiences; (4) increasing access to the literate culture; and (5) international cooperation. Titles are cited in the language of origin. In a few instances, publications intended primarily for developing countries but applicable to industrialized countries have been included. Brief introductions to all chapters highlight significant ideas, controversial issues, and problems of ongoing research, reflecting the wide range of complex views expressed in the literature. (KC)