In general, I'm not sure how schools have been teaching reading in specific places in the relevant generations, but I would agree with the critics who say that reading could have been better taught than it usually was in school over the last few generations.
http://www.amazon.com/Why-Johnny-Cant-Read-about/dp/00609134...
http://www.amazon.com/Beginning-Read-Thinking-Learning-about...
http://www.amazon.com/Overcoming-Dyslexia-Complete-Science-B...
http://www.amazon.com/Early-Reading-Instruction-Science-Brad...
Best wishes in your continued efforts to add to your technical vocabulary. I learn new words fairly regularly here on HN.
Yes. There is much research to back this up.
http://www.amazon.com/Beginning-Read-Thinking-Learning-about...
Phonological awareness (being able to divide words into sounds, simply put) is a learned skill that not everyone learns. It has implications for two issues we are discussing under this subject:
1) A country with a large number of speakers of regional dialects of the national language will find it harder to have people's speech converge to the national standard language without a boost from alphabetic (or at least syllabic) writing,
and
2) once a learner is well acquainted with alphabetic writing, phonological awareness can become so "second nature" that it feels natural, and the sound processing happens below the level of conscious awareness.