Reading is encouraged at home and at school. Writing is encouraged by those who wish to add to the fairy tale tradition but that tends to mean it is the elves, with a long background in singing and saga sharing, who do most of the writing. They also tend to form what we would think of as a Civil Service.
Sadly sprites tend to get out of the habit of reading once they've left full time education (where one two hour period a week is given over to reading). There has been some talk about running a campaign to encourage a return to reading but this has floundered because most on the Council feel sprites are simply too lazy to read and are best left to their own devices.