Educational research from the developed world is often used as the basis for policies and programs in the developing world. However, local contextual factors should be taken into consideration in any transfer of research findings. This study examines associations that socioeconomic status (SES) and the home literacy environment (HLE) have with reading achievement in the developing world. Models that predict reading achievement are created and the patterns across countries are analyzed. The correlation coefficients for achievement and SES, as well as achievement and HLE are compared. Significant between-country variation in the best proxies for SES and HLE is discovered. Results from this study suggest that education efforts in the developing world must consider local contexts to achieve their goals. (Contains 7 tables.)