What Is a First World (aka Developed or Industrialized) Country? (2024)

What Is the First World?

“First world,” a term developed during the Cold War in the 1950s, originally referred to a country that was aligned with the United States and other Western nations in opposition to what was then the Soviet Union and its allies.

Since the collapse of the Soviet Union in 1991, the term’s meaninghas largely evolved. Currently, it 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.

Key Takeaways

  • The term “first world” originally applied to countries that were aligned with the United States and other Western nations in opposition to the former Soviet Union.
  • First world countries are often characterized by prosperity, democracy, and stability—both political and economic.
  • A high literacy rate, free enterprise, and the rule of law are other common characteristics of first world countries.
  • Some critics argue that the concept of dividing nations into three worlds represents an antiquated perspective.
  • Many first world countries have certain demographics that are in extreme poverty, which is more representative of developing countries; other countries with third world status are quite prosperous.

Understanding the First World

Examples of first world countries include the United States, Canada, Australia, New Zealand, and Japan. Several Western European nations qualify as well, especially Great Britain, France, Germany, Switzerland, and the Scandinavian countries.

The ways thatfirst worldcountries are defined can vary. For example, a first world nation might be described as aligned or amicable with Western countries or those in the Northern Hemisphere, highly industrialized, possessing a low poverty rate, and/or high accessibility to modern resources and infrastructure.

Various metrics have been used to define first world nations, including gross domestic product (GDP), gross national product (GNP), mortality rates, and literacy rates. The Human Development Index is also an indicator of which countries might be categorized as having first world status.

Economically speaking, first worldcountries tend to have stable currencies and robust financial markets, making them attractive to investors from all around the world. While they may not be purely capitalist, first world nations’ economies tend to be characterized by free markets, private enterprise, and private ownership of property.

Under the original Cold War alliance designations, the first world consisted of the U.S., Western Europe, and their allies. The second world was the so-called Communist Bloc: the Soviet Union, China, Cuba, etc. The remaining nations, which didn’t align with either group, were assigned to the third world—most of Africa, Asia, the Middle East, and Latin America. However, this definition includes many countries that are economically stable, which does not fit the contemporary definition of a third world country.

Criticism of the First World Designation

Controversy exists around the use of the term “first world”to describe democratic countries in comparison with developing nations and those with political regimes that do not align with Western nations’. There is a tendency toward using the phrase as a way to rank some nations above others in terms of geopolitical significance. Such references can lead to divisive tension in international relations, especially as developing nations seek to negotiate with so-called first world countries or appeal to the international community for support of their causes.

It is not uncommon for first world nations to press for international policies, especially economic ones, that will favor their industries and trade to protect or enhance their wealth and stability. This can include efforts to influence decisions made in such forums as the United Nations or the World Trade Organization (WTO).

Designation as a first world nation does not necessarily mean a country has local access to certain luxuries or resources that are in demand. For example, oil production is a staple industry in many countries that historically have not been regarded as first world nations. Brazil, for instance, contributes substantial amounts of oil to the overall world supply, along with other forms of production;however, the country is recognized as a developing, industrialized state rather than as a first world nation.

In contemporary parlance, “developed” or “industrialized” nation is considered a preferable term to “first world country.”

An Antiquated Model

There is an argument to be made that the model of dividing nations into first, second, or third worlds represents an archaic and antiquated perspective.

Since the end of the Cold War, the United States has become one of the world’s superpowers, and an increasing number of countries have embraced or are in the process of adopting American-style democracy and capitalism. These countries are neither abysmally poor nor exceedingly rich; rule of law and democracy are their defining features. As such, it would be counterintuitive to describe them with the pejorative term of “third world.” Examples of these types of countries include Brazil and India.

The original definition of “first world” as a country aligned with the United States has also led to some odd classifications of quite prosperous and advanced nations. 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, for example—or at least, denied the first world designation.

Then there is the increasing problem of wealth inequality. The high per capita income associated with the first world often belies an extremely uneven distribution of wealth in these nations. Several first world countries have poverty-stricken regions where conditions are comparable to those in developing countries. For example, residents of Appalachia and other rural areas of the United States often lack resources and essentials for a minimum standard of living. Even certain sections of large cities, such as the South Side of Chicago or northern Milwaukee’s 53206 neighborhood, feature impoverished conditions.

What is the first world?

While highly subjective, “first world” is a term that consists of countries that may have the following characteristics: stable democracies, high standards of living, capitalist economies, and economic stability. Other measures that may be used to indicate first world countries include gross domestic product (GDP) or literacy rates. Broadly speaking, countries that may be considered first world include the United States, Japan, Canada, and Australia, among others.

What defines a first world country?

There is no universal way to define a first world country. They are often characterized as industrialized and democratic nations. These features are typically accompanied by stable currencies, sound financial markets, and modern infrastructure. Due to these factors, first world countries often attract foreign direct investment and capital inflows.

Why is the term ‘first world’ contentious?

“First world” is a problematic term because it is outdated. First coined during the Cold War, it referred to countries that were allies of the United States—mostly other westernized countries, as opposed to countries that aligned with the former Soviet Union. Because the economic indicators used to define the first world vary by their perspective, the first world can represent an opaque concept of a country’s economic stature. For instance, despite Saudi Arabia having per capita income that is nearly equal to Portugal’s, it is often considered a second world nation.

The Bottom Line

First world nations are those described as highly-developed industrialized, technologically-advanced, educated, and wealthy. In contrast to developing (second world) and less-developed (third world) countries, the first world is seen to enjoy many benefits such as a relatively high quality of life and prosperity. The phrase "first-world country" was popularized in the 1950s and 1960s during the Cold War to describe developed countries considered to have the power to influence international politics through their economic, technological, and military strength. The term was not explicitly political; it described a grouping based on aggregate wealth or perceived power rather than an ideological outlook. First world countries included Australia, Canada, France, Germany, Italy, Japan, New Zealand, Norway, the United Kingdom, and the United States, among others. Today, the term has fallen somewhat out of favor, as critics argue it is an outmoded model for understanding national development.

What Is a First World (aka Developed or Industrialized) Country? (2024)

FAQs

What Is a First World (aka Developed or Industrialized) Country? ›

First world nations are those described as highly-developed industrialized, technologically-advanced, educated, and wealthy. In contrast to developing (second world

second world
The term "second world" was initially used to refer to the Soviet Union and countries of the communist bloc. It has subsequently been revised to refer to nations that fall between first and third world countries in terms of their development status and economic indicators.
https://www.investopedia.com › terms › second-world
) and less-developed (third world) countries, the first world is seen to enjoy many benefits such as a relatively high quality of life and prosperity.

Is first world developed countries? ›

Today, the terms are slightly outdated and have no official definition. However, the "First World" is generally thought of as the capitalist, industrial, wealthy, and developed countries. This definition includes the countries of North America and Western Europe, Japan, South Korea, Australia, and New Zealand.

What is industrialized vs developed country? ›

A developed country—also called an industrialized country—has a mature and sophisticated economy, usually measured by gross domestic product (GDP) and/or average income per resident. Developed countries have advanced technological infrastructure and have diverse industrial and service sectors.

What are developed countries of the first world referred to as? ›

First-world countries are now often referred to as "developed nations," meaning that they have a stable government and economy. The term second-world is rarely seen or heard anymore because there is no longer a divide between Cold War factions.

What are the 1st, 2nd, and 3rd world countries? ›

Roughly, the major world powers and their economic and political allies were First World countries, allies of the Soviet Union were Second World countries, underdeveloped nations were Third World countries, and nations that were entirely isolated from global politics and economics were the Fourth World.

What is 1 developed country? ›

Human Development Index (HDI)
RankΔCountry or territory
1Switzerland
2(1)Norway
3Iceland
4(2)Hong Kong
65 more rows

What classifies a country as developed or developing? ›

Developed countries are industrialized, have high standards of living, and have strong economic growth. Developing countries are agrarian (or at least not industrialized), have lower standards of living, and have a very weak economy with slow or nonexistent growth.

What do you call a first world country? ›

First world nations are those described as highly-developed industrialized, technologically-advanced, educated, and wealthy.

What do you called developed countries? ›

A developed nation is defined as a country with high industrial and economic development. A developed nation has a strong economy, an advanced technological infrastructure, and its citizens have a high quality of life overall.

What are the most developed countries called? ›

These are sometimes referred to as more economically developed countries (MEDCs). Countries with less developed economies are called less economically developed countries (LEDCs). MEDCs are also called developed or industrialized countries, or MDCs (more developed countries).

Is the US still a first world country? ›

For example, the United States has long been considered part of the first world. Although it has a high GDP per capita, it also scores a relatively high 41.4 on the Gini index, a measure of income inequality, roughly on par with the West African nation of Cote d'Ivoire and Bulgaria.

What is the politically correct term for developing countries? ›

According to AP: "Developing nations is more appropriate [than Third World] when referring to economically developing nations of Africa, Asia and Latin America. Do not confuse with 'nonaligned,' which is a political term." And mostly a historical term now. So "developing world" seemed to be a good solution.

Are second world countries developed? ›

Today, a Second World country is one that falls in between the poverty of developing nations and the prosperity of developed nations. These countries (Turkey, Thailand, and South Africa for example) are growing economically but aren't quite to the level of developed countries in North America and Europe.

Is the USA a developed country? ›

The United States is a highly developed/advanced mixed economy. It is the world's largest economy by nominal GDP; it is also the second largest by purchasing power parity (PPP), behind China. It has the world's sixth highest per capita GDP (nominal) and the eighth highest per capita GDP (PPP) as of 2024.

Which is the least developed country? ›

The following 45 countries were still listed as least developed countries by the UN as of December 2023: Afghanistan, Angola, Bangladesh, Benin, Burkina Faso, Burundi, Cambodia, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Djibouti, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Haiti, ...

Which are the developing countries? ›

Developing Countries
CountryPopulationGNI per capita
Afghanistan41.1 M380 USD
Albania2.8 M6,770 USD
Algeria44.9 M3,920 USD
Angola35.6 M1,880 USD
96 more rows

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