Literacy rate is an indicator of the economic situation in a country. An increase in literacy rate can reduce economic inequality and income disparity and it also provides better employment prospects and leads to decreased population growth rate thus the country's resources are shared among less people.
Health is also affected by literacy rates. There are studies that show a correlation between high literacy rates and lower infant mortality rates. Adults have more ability and knowledge to seek out medical treatment for their families, as well as in their reproductive behavior which include increased contraceptive use, resulting in more visits to the general doctor as opposed to emergency specialized visits.