The state of Brazil’s education system is problematic and it bodes poorly for second stage economic growth (based on higher value knowledge application). The country’s literacy rate is just 88.6% for people 15 years of age and older (CIA World Factbook - Brazil 2009). Moreover, educational achievement is low. The average adult has only received 6.2 years of formal education compared to 12 years in the United States (Wikipedia: Brazil 2009). Also, 45% of the heads of poor families have completed less than a year of school. In the OECD’s worldwide tests of students’ abilities in science, reading, and math, Brazil is near the bottom (see, for example, The Economist Magazine, June 4, 2009, Still a lot to learn (Brazil's poor schools)). As would be expected, Brazil’s education problems are historic in nature. In the 1930s just one in five children attended school. However, when Brazil did embark on a universal education system, the needs of the elites came first with disproportionate spending on universities rather than on basic education (ibid). The federal government currently invests 4.3% of GDP on education, but intends to increase that percentage to 7.0% in the near future (Wikipedia: Brazil 2009).