I am not sure about the literacy rates, but I live in Japan and pretty much every single Japanese person I have ever talked to has told me how painful kanji are and how they wished the Japanese writing system was easier.

In comparison, my mother language is Spanish, a language with very simple spelling rules. My girlfriend is always surprised how she can read out loud a random Spanish text and even though she doesn't understand it, I will understand her easily (it also helps that both languages have very similar sounds).