A commodities boom and an expanding middle class are helping Brazil rub shoulders with economic heavyweights but a poor education system is undermining its long-term ability to compete. A massive oil discovery and investment grade credit ratings this year fueled expectations that prosperity for Brazil's 185 million people was only a matter of time. But a historic neglect of education is a major road block in Brazil's quest to join the big leagues of developed economies. A shortage of skilled labor is already proving a drag on economic growth and diversification, and experts say Brazil will continue to struggle until its schools improve and more of its workers are properly educated. “If (we) decide to become a more qualified global player, which means exporting not only timber and stone but also technology and know-how, then education is fundamental,” said Jorge Abrahao, director of the government's Institute for Applied Economic Research. Among the so-called BRIC countries of leading emerging economies, Brazil's literacy rate at 89 percent of the adult population lags Russia's 99 percent and China's 91 percent. Only India scores lower with 61 percent of its citizens able to read and write, according to a World Bank report. In South America, only Peru and Bolivia have lower literacy rates than Brazil. Strong economic growth, rising incomes and social welfare programs have pulled millions of Brazilians out of poverty in recent years but many more, who lack even the most basic skills, are trapped in extreme poverty. “If I had the education others have, I wouldn't lead the kind of life I do,” said Ana Maria Soares, who is illiterate and at 60 years of age still works as a maid for about $350 a month. “My education consisted of working.” Brazil's education system has a laundry list of problems, including underpaid and ill-prepared teachers, barren schools, and many students living in dire social and economic conditions. A government survey in 2005 said only 54 percent of children who started primary school were expected to complete it. Since then, government aid for parents with kids in school has likely improved attendance but many children still work to help feed the family or are dragged into delinquency or drugs. “Families here sometimes consist of a grandmother, an aunt or an older brother. A big majority of (children) don't have a father,” said Ilaria Soares Arruda, headmistress at CEF 519, the worst-ranking school in the Federal District, which includes the capital Brasilia. Earlier this year, padlocks were put on classroom doors at CEF 519 to stop students from wrecking furniture or stealing school materials. Low standards Even those who attend school learn less than their peers abroad. The latest education survey published by the Organization for Economic Cooperation and Development ranks Brazilian high school students 53rd and 51st out of 57 countries for their mathematics and reading proficiency, respectively. South Korea ranked first in both categories. Brazil does have some good schools but they are often located in more privileged areas. At a grade school in 314 South, an upper middle-class neighborhood of Brasilia, children sit in the courtyard to read literature for an hour to classical music. Innovative learning techniques and active parent participation have helped make it the top school in the Federal District, says headmistress Sandra Ponce. Brazil neglected education for centuries and inaugurated its first university only in 1934, roughly three centuries after other countries in the hemisphere. Even then, the state invested mostly in elites and not the poor so as to maintain a large pool of cheap labor. “For Brazil, the big challenge ... is the disparity that exists. In a way, the diversities of the world exist within Brazil,” said Suhas Parandekar, senior education specialist at the World Bank. Over the last decade, governments in Brazil have invested heavily on increasing school attendance but less so on the quality of education. President Luiz Inacio Lula da Silva, who did not finish high school, has funneled spending to low-ranking schools, building university campuses and boosting teacher training. Today, Brazil spends 4 percent of gross domestic product on education, more than India's 3.2 percent and Russia's 3.8 percent, according to the latest data compiled by the World Bank. Data for China was not available. But critics say education has still not become a national priority and even with first-rate policies, improvements would not be visible for at least another generation. “I fear we will continue to lag in 10 years time,” said Eduardo Giannetti, a professor of economics at Ibmec business school in Sao Paulo. “I still don't see an emphasis on education as the big challenge for Brazilian society.” - Reuters __