Decoding First, Second, and Third World Countries (2024)

The classification of countries into First (Allied capitalist countries), Second (Soviet Union and communist allies), and Third World (Non-aligned countries-often developing) emerged during the Cold War (1947-1991), reflecting the political and economic divisions of the time.

Unraveling the meaning behind the term ‘First World’

First world describes a developed and industrialized country characterized by political and economic stability, democracy, the rule of law, a capitalist economy, and a high standard of living. "First world" started during the Cold War in the 1950s, denoting countries that were friends with the United States and other Western nations, not with the Soviet Union and its friends. After the collapse of the Soviet Union in 1991, the “First World” largely evolved.

The countries that are considered part of the First World are North America (Canada, United States), Western Europe (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom), East Asia (Japan, South Korea), Australia, and New Zealand. Since the end of the Cold War, there is no such official classification of what constitutes a “First World” country.

The metrics used to define first-world nations include Gross Domestic Product, Gross National Product, Mortality rate (or death rate, a measure of the number of deaths in a particular population, scaled to the size of that population, per unit of time), literacy rates, and Human Development Index. First world countries tend to have stable currencies and strong financial markets, making them attractive to investors from all around the world.

Criticism of ‘First World’

The term "first world" can cause problems because it often makes some countries seem more important than others. This can lead to tension, especially when poorer countries are trying to talk to or get help from richer ones. Rich countries often try to make rules that help their businesses and trade, even in international organizations like the United Nations. Being called a "first world" country doesn't always mean everyone there has a lot of money or access to everything they need.

The old meaning of "first world" as a country that was friends with the United States has caused some confusion. It has led to some very wealthy and advanced countries being put in odd categories. Oil-rich Saudi Arabia, which has a higher per capita income than first world country Turkey, is still often technically slotted as a second or third world nation.

Understanding the concept of ‘Second World’

A Second World country is one that falls between the poverty of developing nations and the prosperity of developed nations. The concept of ‘Second World’ arose during the Cold war (1947-1991). Countries that are in ‘second world’ are Russia, Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, China, North Korea, Vietnam, Laos, Mongolia, Cambodia, Cuba, Albania, Bulgaria, Czechoslovakia, East Germany, Poland, and Romania. These countries are growing economically but aren't quite to the level of developed countries in North America and Europe. These countries were once controlled by the Soviet Union. Second world countries were centrally planned economies and one-party states. The term ‘Second World’ has also been used to cover countries that are more stable and more developed as the worst case of ‘Third World’ countries but less developed and less stable than ‘First World’ countries. The economies of the Second World countries were controlled by the state, with limited participation from the private sector. The communist parties held complete political power. In these countries, the government aimed to provide basic necessities like housing, healthcare, and education for all citizens. The use of the term ‘Second World’ fell out of use shortly after the end of the Cold War. However, the term is still used to describe countries that are transitioning from a planned economy to a market economy and countries which fall somewhere between developed and developing nations in terms of economic indicators.

Criticism of ‘Second World’

There are many criticisms of ‘Second World’. The collapse of the Union of Soviet Socialist Republics (USSR) in 1991 ended the bipolar world order. Many old communist countries are now Democratic (They have free elections and multiple political parties) and Capitalist (Their economies are based on private ownership and market forces). The terms First, Second, and Third World were too simplistic. Nowadays countries sometimes mixed features of all the three. For example- a country might have a well-developed tech sector (developed feature) but a struggling agricultural sector (developing feature). The criticism of the second world countries that there was a legacy of criticism i.e. the economies were centrally planned by the government which can be inefficient and hinder innovation and also political repression (Political repression is when a government uses its power to control or punish people who disagree with it or speak out against it), then there is corruption.

Unraveling the meaning behind the term "Third World"

Certain nations were categorized as "Third World" countries during the Cold War (1947-1991). This term was used to define countries that remained non-aligned with either NATO or Warsaw Pact. This term was used to categorize nations that were economically underdeveloped or developing, which had no competition with the major world powers. The term became stereotyped to refer to developing nations as ‘Third World’ countries. Countries that are part of the ‘Third World’ are Angola, Bangladesh, Bhutan, Bolivia, and more. Nations are often characterized by metrics like Gross Domestic Product, Employment growth. In developing countries, low production rates and struggling labor market characteristics are usually paired with relatively low levels of education, poor infrastructure, lack of sanitation, limited access to health care, and lower costs of living. Developing nations are closely watched by the International Monetary Fund (IMF) and the World Bank, which provide grants and loans that help struggling nations improve their infrastructure and economic systems.

Criticism of “Third World”

There are many criticisms of “Third World’ countries. Use of ‘Third World’ to describe certain countries may indicate a lower level of geopolitical significance as compared to 'First World’ and ‘Second World’. For instance- A country that is a part of ‘First World’ is not necessarily better than a ‘Third World’ country. The term ‘Developing countries’ is widely used nowadays instead of’ ‘Third World’ countries. ‘Third World’ is often used to describe countries facing poverty, corruption or other challenges. But using ‘Third World’ is not fair for those countries who are a part of it because the term can oversimplify complex issues and can lead to misunderstanding. Many developing countries are rich in natural resources and have vibrant cultures. Instead, it’s better to specify which challenges a country is facing rather than just calling it a ‘Third World’. Another criticism is that the ‘Third World’ can create stereotypes of poverty, war, and instability. This ignores the reality that many developing countries are experiencing economic growth and social development.

Is India a ‘Third World’ country?

India was classified as a ‘Third World’ country at the time of Independence from British rule in 1947. At that time, India’s Gross Domestic Product was just 2.7 lakh crore, but now it has grown to $3.75 trillion. India, which is the world’s 6th largest economy, is currently classified as a developing nation. The ‘World Bank’ currently classifies it as a lower-middle-income economy. India’s Prime Minister Narendra Modi, on the 76th Independence Day, called for turning India into a developed nation by 2047.

Decoding the ‘Fourth World’

The Fourth World is a term used to describe the most underdeveloped and poverty-stricken regions of the world. Many people in these nations don’t have strong political connections and live in traditional ways, like hunting and gathering or living in tribes that move around. Even though they can take care of themselves, they were considered part of the Fourth World during the Cold War because they weren’t doing well in terms of economic performance. Countries that are part of the Fourth World are Cambodia, Zimbabwe, Myanmar, and more.

The ‘Fourth World’ was born as an extension of the developing ‘Third World’ to describe places and populations characterized by extremely low income per capita and limited natural resources. The countries that constitute the ‘Fourth World’ are Angola, Ethiopia, Ghana, Namibia, and more.

In 2007, the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) was introduced to promote “minimum standards for the survival, dignity, and well-being of the indigenous peoples of the world.” Since then, communications and organizing among Fourth World peoples accelerated in the form of international treaties for trade, travel, and security.

Criticism of ‘Fourth World’

There are many criticisms of “Fourth World’ countries. The first criticism is that labeling an entire country as ‘Fourth World’ can be seen as paternalistic and dehumanizing, as this implies that these countries are very poor or underdeveloped and completely ignores their cultural strength and power. The second criticism is that we do not see the history of these countries, which has shaped their circ*mstances.

There are around 100 countries that don’t fit neatly into the categories of the First World, Second World, or Third World. Within a country, there can be areas that are like the First, Second, or Third World. For example, Shanghai and Beijing are very wealthy, but many rural parts of the country are still developing.

Globalization and Economic Integration have been blurring the lines among the First, Second, and Third World. Firstly, freer trade agreements and increased Foreign Direct Investment (FDI) have allowed developing countries to participate more in the global economy. Many former “Third World” nations like China and India are now economic powerhouses, with India being the 6th largest economy. Manufacturing is no longer confined to specific countries. Products are often assembled in stages across different nations, making it hard to categorize economies based solely on industrial output.

Shifting Geopolitical Dynamics have also been blurring the lines between these classifications. Countries like India, Brazil, South Africa, and more are becoming powerful economically, challenging the traditional rich countries, often called the “First World.” At the same time, some of the developed countries aren’t doing as well as they used to. They might be stuck or even getting worse economically. So, the gap between rich and poor countries isn’t as clear as before.