Not saying that phonics isn't better, much better, because it is.
I’ve lived and work in both Japan and Taiwan and I can say unequivocally that FUNCTIONAL illiteracy is VERY LOW in both countries.
But then illegal immigration is not a problem in their country.
This might sound racist, but here’s a thought experiment — what if you just measured the WHITE literacy rate in this country?
That’s still 215 million people ( more than the population of Japan ).
I’d be willing to bet that the literacy rate would be just as high as theirs.