What is literacy?

The Workforce Investment Act of 1998 defines literacy as “an individual’s ability to read, write, speak in English, compute and solve problems at levels of proficiency necessary to function on the job, in the family of the individual and in society.”
As information and technology have increasingly shaped our society, the skills we need to function successfully have gone beyond reading, and literacy has come to include the skills listed in the current definition.
What is your definition of literacy?