<![CDATA[Illiteracy remains a significant challenge in many rural communities, particularly in developing countries where limited access to education intersects with poverty and social inequality. While previous studies have highlighted the relationship between literacy and economic outcomes, limited attention has been paid to the social mechanisms through which illiteracy influences community economic development in rural settings. This study aims to analyze the impact of illiteracy on community economic development from a social perspective in Fatu Manufui Village, Boking Subdistrict, South Central Timor Regency, Indonesia. A qualitative descriptive approach was employed involving seven informants consisting of one village head and six community members identified as illiterate adults. Data were collected through observation, in-depth interviews, and documentation and analyzed using thematic analysis. The findings reveal that illiteracy affects community economic development through several interconnected mechanisms. First, limited literacy skills restrict access to information, knowledge, and employment opportunities. Second, low educational attainment contributes to the persistence of poverty and dependence on traditional livelihoods. Third, social and cultural factors reinforce the reproduction of illiteracy across generations. However, the study also found that social support networks, informal learning, and community relationships function as compensatory mechanisms that help individuals cope with literacy limitations. These findings extend Human Capital Theory by demonstrating that literacy contributes not only to economic productivity but also to access to social and cultural capital. The study highlights the importance of community-based non-formal education programs that integrate literacy development with economic empowerment initiatives.]]>
