The concept of First World originated during the
Cold War and comprised countries that were under the influence of the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
and the rest of
NATO
The North Atlantic Treaty Organization (NATO, ; french: Organisation du traité de l'Atlantique nord, ), also called the North Atlantic Alliance, is an intergovernmental military alliance between 30 member states – 28 European and two No ...
and opposed the
Soviet Union
The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, ...
and/or
communism
Communism (from Latin la, communis, lit=common, universal, label=none) is a far-left sociopolitical, philosophical, and economic ideology and current within the socialist movement whose goal is the establishment of a communist society, a ...
during the Cold War. Since the collapse of the Soviet Union in 1991, the definition has instead largely shifted to any country with little
political risk
Political risk is a type of risk faced by investors, corporations, and governments that political decisions, events, or conditions will significantly affect the profitability of a business actor or the expected value of a given economic action. ...
and a well-functioning
democracy
Democracy (From grc, δημοκρατία, dēmokratía, ''dēmos'' 'people' and ''kratos'' 'rule') is a form of government in which people, the people have the authority to deliberate and decide legislation ("direct democracy"), or to choo ...
,
rule of law,
capitalist economy
Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private pr ...
,
economic stability, and high
standard of living. Various ways in which modern First World countries are usually determined include
GDP
Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...
,
GNP
The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP), plus factor incomes earned by foreign ...
,
literacy rates
This is a list of countries by literacy rate.
The global literacy rate for all people aged 15 and above is 86.3%. The global literacy rate for all males is 90.0%, and the rate for all females is 82.7%. The rate varies throughout the world, with ...
,
life expectancy
Life expectancy is a statistical measure of the average time an organism is expected to live, based on the year of its birth, current age, and other demographic factors like sex. The most commonly used measure is life expectancy at birth ...
, and the
Human Development Index
The Human Development Index (HDI) is a statistic composite index of life expectancy, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income indicators, wh ...
. In common usage, "first world" typically refers to "the
highly developed industrialized nations often considered the westernized countries of the world".
History
After
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
, the world split into two large geopolitical blocs, separating into spheres of
communism
Communism (from Latin la, communis, lit=common, universal, label=none) is a far-left sociopolitical, philosophical, and economic ideology and current within the socialist movement whose goal is the establishment of a communist society, a ...
and
capitalism
Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, priva ...
. This led to the
Cold War, during which the term ''First World'' was often used because of its political, social, and economic relevance. The term itself was first introduced in the late 1940s by the
United Nations
The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoniz ...
. 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
Australia & New Zealand, the developed countries of Asia (
South Korea
South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korean Peninsula and sharing a land border with North Korea. Its western border is formed by the Yellow Sea, while its eas ...
,
Japan,
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
, and
Taiwan
Taiwan, officially the Republic of China (ROC), is a country in East Asia, at the junction of the East and South China Seas in the northwestern Pacific Ocean, with the People's Republic of China (PRC) to the northwest, Japan to the nort ...
), and the wealthy countries of
North America and Europe, particularly
Western Europe
Western Europe is the western region of Europe. The region's countries and territories vary depending on context.
The concept of "the West" appeared in Europe in juxtaposition to "the East" and originally applied to the ancient Mediterranean ...
.
In contemporary society, the First World is viewed as countries that have the most advanced economies, the greatest influence, the highest standards of living, and the greatest technology.
[ After the Cold War, these countries of the First World included member states of ]NATO
The North Atlantic Treaty Organization (NATO, ; french: Organisation du traité de l'Atlantique nord, ), also called the North Atlantic Alliance, is an intergovernmental military alliance between 30 member states – 28 European and two No ...
, U.S.-aligned states, neutral countries that were developed and industrialized, and the former British Colonies
A Crown colony or royal colony was a colony administered by The Crown within the British Empire. There was usually a Governor, appointed by the British monarch on the advice of the UK Government, with or without the assistance of a local Coun ...
that were considered developed. It can be defined succinctly as Europe, plus the richer countries of the former British Empire (USA, Canada, Australia, Singapore, New Zealand), Israel, Japan, South Korea, and Taiwan.
According to Nations Online, the member countries of NATO after the Cold War included:[
* ]Belgium
Belgium, ; french: Belgique ; german: Belgien officially the Kingdom of Belgium, is a country in Northwestern Europe. The country is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeast, France to th ...
, Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
, Denmark
)
, song = ( en, "King Christian stood by the lofty mast")
, song_type = National and royal anthem
, image_map = EU-Denmark.svg
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of Denmark
, establish ...
, France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of overseas regions and territories in the Americas and the Atlantic, Pacific and Indian Oceans. Its metropolitan area ...
, West Germany
West Germany is the colloquial term used to indicate the Federal Republic of Germany (FRG; german: Bundesrepublik Deutschland , BRD) between its formation on 23 May 1949 and the German reunification through the accession of East Germany on 3 O ...
, Greece
Greece,, or , romanized: ', officially the Hellenic Republic, is a country in Southeast Europe. It is situated on the southern tip of the Balkans, and is located at the crossroads of Europe, Asia, and Africa. Greece shares land borders ...
, Iceland
Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its s ...
, Italy
Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
, Luxembourg
Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...
, the Netherlands
)
, anthem = ( en, "William of Nassau")
, image_map =
, map_caption =
, subdivision_type = Sovereign state
, subdivision_name = Kingdom of the Netherlands
, established_title = Before independence
, established_date = Spanish Netherl ...
, Norway
Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and the ...
, Portugal
Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of ...
, Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, i ...
, Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...
, the United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
, and the United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
.
The Western-aligned countries included:
* Australia, Israel
Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
, Japan, New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island count ...
, Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
, South Africa
South Africa, officially the Republic of South Africa (RSA), is the Southern Africa, southernmost country in Africa. It is bounded to the south by of coastline that stretch along the Atlantic Ocean, South Atlantic and Indian Oceans; to the ...
, South Korea
South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korean Peninsula and sharing a land border with North Korea. Its western border is formed by the Yellow Sea, while its eas ...
, and Taiwan
Taiwan, officially the Republic of China (ROC), is a country in East Asia, at the junction of the East and South China Seas in the northwestern Pacific Ocean, with the People's Republic of China (PRC) to the northwest, Japan to the nort ...
The neutral countries included:
* Austria
Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...
, Finland
Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of B ...
, Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
, Sweden, Switzerland, and Yugoslavia
Yugoslavia (; sh-Latn-Cyrl, separator=" / ", Jugoslavija, Југославија ; sl, Jugoslavija ; mk, Југославија ;; rup, Iugoslavia; hu, Jugoszlávia; rue, label=Pannonian Rusyn, Югославия, translit=Juhoslavija ...
Shifting in definitions
Since the end of the Cold War, the original definition of the term "First World" is no longer necessarily applicable. There are varying definitions of the First World; however, they follow the same idea. John D. Daniels, past president of the Academy of International Business, defines the First World to be consisting of "high-income industrial countries". Scholar and Professor George J. Bryjak defines the First World to be the "modern, industrial, capitalist countries of North America and Europe". L. Robert Kohls, former director of training for the U.S. Information Agency and the Meridian International Center in Washington, D.C., uses First World and "fully developed" as synonyms.
Other indicators
Varying definitions of the term First World and the uncertainty of the term in today's world leads to different indicators of First World status. In 1945, the United Nations used the terms first, second, third, and fourth worlds to define the relative wealth of nations (although popular use of the term fourth world did not come about until later). There are some references towards culture in the definition. They were defined in terms of Gross National Product
The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP), plus factor incomes earned by foreign ...
(GNP), measured in U.S. dollars, along with other socio-political factors.[ The first world included the large industrialized, democratic (free elections, etc.) nations.][ The ]second world
The Second World is a term originating during the Cold War for the industrial socialist states that were under the influence of the Soviet Union. In the first two decades following World War II, 19 communist states emerged; all of these were at ...
included modern, wealthy, industrialized nations, but they were all under communist control.[ Most of the rest of the world was deemed part of the ]third world
The term "Third World" arose during the Cold War to define countries that remained non-aligned with either NATO or the Warsaw Pact. The United States, Canada, Japan, South Korea, Western European nations and their allies represented the " First ...
, while the fourth world was considered to be those nations whose people were living on less than US$100 annually.[ If we use the term to mean high-income industrialized economies, then the ]World Bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
classifies countries according to their GNI or gross national income per capita. The World Bank separates countries into four categories: high-income, upper-middle-income, lower-middle-income, and low-income economies. The First World is considered to be countries with high-income economies. The high-income economies are equated to mean developed and industrialized countries.
Three World Model
The terms "First World", "Second World", and "Third World" were originally used to divide the world's nations into three categories. The model did not emerge to its endstate all at once. The complete overthrow of the pre–World War II status quo, known as the Cold War, left two superpowers (the United States and the Soviet Union
The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, ...
) vying for ultimate global supremacy. They created two camps, known as blocs. These blocs formed the basis of the concepts of the First and Second Worlds.
Early in the Cold War era, NATO
The North Atlantic Treaty Organization (NATO, ; french: Organisation du traité de l'Atlantique nord, ), also called the North Atlantic Alliance, is an intergovernmental military alliance between 30 member states – 28 European and two No ...
and the Warsaw Pact
The Warsaw Pact (WP) or Treaty of Warsaw, formally the Treaty of Friendship, Cooperation and Mutual Assistance, was a collective defense treaty signed in Warsaw, Poland, between the Soviet Union and seven other Eastern Bloc socialist repub ...
were created by the United States and the Soviet Union, respectively. They were also referred to as the Western Bloc
The Western Bloc, also known as the Free Bloc, the Capitalist Bloc, the American Bloc, and the NATO Bloc, was a coalition of countries that were officially allied with the United States during the Cold War of 1947–1991. It was spearheaded by ...
and the Eastern Bloc. The circumstances of these two blocs were so different that they were essentially two worlds, however, they were not numbered first and second. The onset of the Cold War is marked by Winston Churchill
Sir Winston Leonard Spencer Churchill (30 November 187424 January 1965) was a British statesman, soldier, and writer who served as Prime Minister of the United Kingdom twice, from 1940 to 1945 during the Second World War, and again from ...
's famous "Iron Curtain" speech. In this speech, Churchill describes the division of the West and East to be so solid that it could be called an iron curtain.[
In 1952, the French ]demographer
Demography () is the statistical study of populations, especially human beings.
Demographic analysis examines and measures the dimensions and dynamics of populations; it can cover whole societies or groups defined by criteria such as ed ...
Alfred Sauvy coined the term Third World in reference to the three estates in pre-revolutionary France. The first two estates being the nobility and clergy and everybody else comprising the third estate.[ He compared the ]capitalist
Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, priva ...
world (i.e., First World) to the nobility and the communist world (i.e., Second World) to the clergy. Just as the third estate comprised everybody else, Sauvy called the Third World all the countries that were not in this Cold War division, i.e., the unaligned and uninvolved states in the "East-West Conflict". With the coining of the term Third World directly, the first two groups came to be known as the "First World" and "Second World" respectively. Here the three-world system emerged.
However, Shuswap Chief George Manuel
George Manuel, OC (February 21, 1921 – November 15, 1989, Secwépemc) was an Aboriginal leader in Canada. Born and raised in British Columbia, he became politically active there and in Alberta. In 1970 he was elected and served until 1976 as c ...
believes the Three World Model to be outdated. In his 1974 book ''The Fourth World: An Indian Reality'', he describes the emergence of the Fourth World while coining the term. The fourth world refers to "nations", e.g., cultural entities and ethnic groups, of indigenous people who do not compose states in the traditional sense.[ Rather, they live within or across state boundaries (see ]First Nations
First Nations or first peoples may refer to:
* Indigenous peoples, for ethnic groups who are the earliest known inhabitants of an area.
Indigenous groups
*First Nations is commonly used to describe some Indigenous groups including:
**First Natio ...
). One example is the Native Americans of North America, Central America, and the Caribbean.[
]
Post Cold War
With the fall of the Soviet Union in 1991, the Eastern Bloc ceased to exist and with it, the perfect applicability of the term Second World. The definitions of the First World, Second World, and Third World changed slightly, yet generally describe the same concepts.
Relationships with the other worlds
Historic
During the Cold War era, the relationships between the First World, Second World and the Third World were very rigid. The First World and Second World were at constant odds with one another via the tensions between their two cores, the United States and the Soviet Union, respectively. The Cold War, as its name suggests, was a primarily ideological struggle between the First and Second Worlds, or more specifically, the U.S. and the Soviet Union. Multiple doctrines and plans dominated Cold War dynamics including the Truman Doctrine
The Truman Doctrine is an American foreign policy that pledged American "support for democracies against authoritarian threats." The doctrine originated with the primary goal of containing Soviet geopolitical expansion during the Cold War. It wa ...
and Marshall Plan
The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative enacted in 1948 to provide foreign aid to Western Europe. The United States transferred over $13 billion (equivalent of about $ in ) in economic re ...
(from the U.S.) and the Molotov Plan (from the Soviet Union). The extent of the tension between the two worlds was evident in Berlin
Berlin ( , ) is the capital and List of cities in Germany by population, largest city of Germany by both area and population. Its 3.7 million inhabitants make it the European Union's List of cities in the European Union by population within ci ...
-- which was then split into East and West. To stop citizens in East Berlin from having too much exposure to the capitalist West, the Soviet Union put up the Berlin Wall within the actual city.
The relationship between the First World and the Third World is characterized by the very definition of the Third World. Because countries of the Third World were noncommittal and non-aligned with both the First World and the Second World, they were targets for recruitment. In the quest for expanding their sphere of influence, the United States (core of the First World) tried to establish pro-U.S. regimes in the Third World. In addition, because the Soviet Union (core of the Second World) also wanted to expand, the Third World often became a site for conflict. Some examples include Vietnam
Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making i ...
and Korea
Korea ( ko, 한국, or , ) is a peninsular region in East Asia. Since 1945, it has been divided at or near the 38th parallel, with North Korea (Democratic People's Republic of Korea) comprising its northern half and South Korea (Republic o ...
. Success lay with the First World if at the end of the war, the country became capitalistic and democratic, and with the Second World, if the country became communist. While Vietnam as a whole was eventually communized, only the northern half of Korea remained communist. The Domino Theory
The domino theory is a geopolitical theory which posits that increases or decreases in democracy in one country tend to spread to neighboring countries in a domino effect. It was prominent in the United States from the 1950s to the 1980s in t ...
largely governed United States policy regarding the Third World and their rivalry with the Second World. In light of the Domino Theory, the U.S. saw winning the proxy wars in the Third World as a measure of the "credibility of U.S. commitments all over the world".
Present
The movement of people and information largely characterizes the inter-world relationships in the present day. A majority of breakthroughs and innovation originate in Western Europe and the U.S. and later their effects permeate globally. As judged by the Wharton School of Business at the University of Pennsylvania, most of the Top 30 Innovations of the Last 30 Years were from former First World countries (e.g., the U.S. and countries in Western Europe).
The disparity between knowledge in the First World as compared to the Third World is evident in healthcare and medical advancements. Deaths from water-related illnesses have largely been eliminated in "wealthier nations", while they are still a "major concern in the developing world". Widely treatable diseases in the developed countries of the First World, malaria
Malaria is a mosquito-borne infectious disease that affects humans and other animals. Malaria causes symptoms that typically include fever, tiredness, vomiting, and headaches. In severe cases, it can cause jaundice, seizures, coma, or death. S ...
and tuberculosis
Tuberculosis (TB) is an infectious disease usually caused by '' Mycobacterium tuberculosis'' (MTB) bacteria. Tuberculosis generally affects the lungs, but it can also affect other parts of the body. Most infections show no symptoms, i ...
needlessly claim many lives in the developing countries of the Third World. Each year 900,000 people die from malaria and combating the disease accounts for 40% of health spending in many African countries.
The International Corporation for Assigned Names and Numbers ( ICANN) announced that the first Internationalized Domain Names (IDNs) would be available in the summer of 2010. These include non-Latin domains such as Chinese, Arabic, and Russian. This is one way that the flow of information between the First and Third Worlds may become more even.
The movement of information and technology from the First World to various Third World countries has created a general "aspir(ation) to First World living standards".[ The Third World has lower living standards as compared to the First World.] Information about the comparatively higher living standards of the First World comes through television, commercial advertisements and foreign visitors to their countries.[ This exposure causes two changes: a) living standards in some Third World countries rise and b) this exposure creates hopes and many from Third World countries emigrate—both legally and illegally—to these First World countries in hopes of attaining that living standard and prosperity.][ In fact, this emigration is the "main contributor to the increasing populations of U.S. and Europe".][ While these emigrations have greatly contributed to globalization, they have also precipitated trends like brain drain and problems with ]repatriation
Repatriation is the process of returning a thing or a person to its country of origin or citizenship. The term may refer to non-human entities, such as converting a foreign currency into the currency of one's own country, as well as to the pro ...
. They have also created immigration and governmental burden problems for the countries (i.e., First World) that people emigrate to.[
]
Environmental footprint
Some have argued that the most important human population problem for the world is not the high rate of population increase in certain Third World countries per se, but rather the "increase in total human impact".[ The per-capita footprint—the resources consumed and the waste created by each person—varies globally. The highest per-person impact occurs in the First World and the lowest in the Third World: each inhabitant of the United States, Western Europe and Japan consumes 32 times as many resources and puts out 32 times as much waste as each person in the Third World.][ However, China leads the world in total emissions, but its large population skews its per-capita statistic lower than those of more developed nations.
As large consumers of fossil fuels, First World countries drew attention to environmental pollution. The Kyoto Protocol is a treaty that is based on the ]United Nations Framework Convention on Climate Change
The United Nations Framework Convention on Climate Change (UNFCCC) established an international environmental treaty to combat "dangerous human interference with the climate system", in part by stabilizing greenhouse gas concentrations in ...
, which was finalized in 1992 at the Earth Summit in Rio. It proposed to place the burden of protecting the climate on the United States and other First World countries.[ Countries that were considered to be developing, such as China and India, were not required to approve the treaty because they were more concerned that restricting emissions would further restrain their development.
]
International relations
Until the recent past, little attention was paid to the interests of Third World countries. This is because most international relations scholars have come from the industrialized, First World nations. As more countries have continued to become more developed, the interests of the world have slowly started to shift.[ However, First World nations still have many more universities, professors, journals, and conferences, which has made it very difficult for Third World countries to gain legitimacy and respect with their new ideas and methods of looking at the world.][
]
Development theory
During the Cold War, the modernization theory and development theory
Development theory is a collection of theories about how desirable change in society is best achieved. Such theories draw on a variety of social science disciplines and approaches. In this article, multiple theories are discussed, as are recent d ...
developed in Europe as a result of their economic, political, social, and cultural response to the management of former colonial territories. European scholars and practitioners of international politics hoped to theorize ideas and then create policies based on those ideas that would cause newly independent colonies to change into politically developed sovereign nation-states.[ However, most of the theorists were from the United States, and they were not interested in Third World countries achieving development by any model.][ They wanted those countries to develop through liberal processes of politics, economics, and socialization; that is to say, they wanted them to follow the liberal capitalist example of a so-called "First World state".][ Therefore, the modernization and development tradition consciously originated as a (mostly U.S.) alternative to the Marxist and neo-Marxist strategies promoted by the "]Second World
The Second World is a term originating during the Cold War for the industrial socialist states that were under the influence of the Soviet Union. In the first two decades following World War II, 19 communist states emerged; all of these were at ...
states" like the Soviet Union.[ It was used to explain how developing Third World states would naturally ''evolve'' into developed First World States, and it was partially grounded in liberal economic theory and a form of Talcott Parsons' sociological theory.][
]
Globalization
The United Nations
The United Nations (UN) is an intergovernmental organization whose stated purposes are to maintain international peace and security, develop friendly relations among nations, achieve international cooperation, and be a centre for harmoniz ...
's ESCWA
The United Nations Economic and Social Commission for West Asia (ESCWA; ar, الإسكوا) is one of five regional commissions under the jurisdiction of the United Nations Economic and Social Council. The role of the Commission is to promote e ...
has written that globalization
Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relation ...
"is a widely-used term that can be defined in a number of different ways". Joyce Osland from San Jose State University
San José State University (San Jose State or SJSU) is a public university in San Jose, California. Established in 1857, SJSU is the oldest public university on the West Coast and the founding campus of the California State University (CSU) sy ...
wrote: "Globalization has become an increasingly controversial topic, and the growing number of protests around the world has focused more attention on the basic assumptions of globalization and its effects." "Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914."
European Union
The most prominent example of globalization in the first world is the European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been de ...
(EU). The European Union is an agreement in which countries voluntarily decide to build common governmental institutions to which they delegate some individual national sovereignty so that decisions can be made democratically on a higher level of common interest for Europe as a whole. The result is a union of 27 Member States covering with roughly 450 million people. In total, the European Union produces almost a third of the world's gross national product and the member states speak more than 23 languages. All of the European Union countries are joined together by a hope to promote and extend peace, democracy, cooperativeness, stability, prosperity, and the rule of law.[ In a 2007 speech, Benita Ferrero-Waldner, the European Commissioner for External Relations, said, "The future of the EU is linked to globalization...the EU has a crucial role to play in making globalization work properly...". In a 2014 speech at the European Parliament, the Italian PM ]Matteo Renzi
Matteo Renzi (; born 11 January 1975) is an Italian politician who served as prime minister of Italy from 2014 to 2016. He has been a senator for Florence since 2018. Renzi has served as the leader of Italia Viva (IV) since 2019, having bee ...
stated, "We are the ones who can bring civilization to globalization".
Just as the concept of the First World came about as a result of World War II, so did the European Union.[ In 1951 the beginnings of the EU were founded with the creation of European Coal and Steel Community (ECSC). From the beginning of its inception, countries in the EU were judged by many standards, including economic ones. This is where the relation between globalization, the EU, and First World countries arises.][ Especially during the 1990s when the EU focused on economic policies such as the creation and circulation of the ]Euro
The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...
, the creation of the European Monetary Institute
The European Monetary Institute (EMI) was the forerunner of the European Central Bank (ECB), operating between 1994 and 1997.
History
The EMI was created 1 January 1994 to oversee the second stage in the creation of monetary union. The EMI itself ...
, and the opening of the European Central Bank
The European Central Bank (ECB) is the prime component of the monetary Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's most important centr ...
.[
In 1993, at the Copenhagen European Council, the European Union took a decisive step towards expanding the EU, what they called the Fifth Enlargement, agreeing that "the associated countries in Central and Eastern Europe that so desire shall become members of the European Union". Thus, enlargement was no longer a question of if, but when and how. The European Council stated that accession could occur when the prospective country is able to assume the obligations of membership, that is that all the economic and political conditions required are attained. Furthermore, it defined the membership criteria, which are regarded as the Copenhagen criteria, as follows:
* stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities
* the existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union
* the ability to take on the obligations of membership including adherence to the aims of political, economic and monetary union
It is clear that all these criteria are characteristics of developed countries. Therefore, there is a direct link between globalization, developed nations, and the European Union.][
]
Multinational corporations
A majority of multinational corporation
A multinational company (MNC), also referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation or a stateless corporation with subtle but contrasting senses, i ...
s find their origins in First World countries. After the collapse of the Soviet Union, multinational corporations proliferated as more countries focused on global trade. The series of General Agreement on Tariffs and Trade (GATT) and later the World Trade Organization
The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation
in the United Nations System, governments use the organization to establish, revise, and ...
(WTO) essentially ended the protectionist measures that were dissuading global trade.[ The eradication of these protectionist measures, while creating avenues for economic interconnection, mostly benefited developed countries, who by using their power at GATT summits, forced developing and underdeveloped countries to open their economies to Western goods.]
As the world starts to globalize, it is accompanied by criticism of the current forms of globalization, which are feared to be overly corporate-led. As corporations become larger and multinational, their influence and interests go further accordingly. Being able to influence and own most media companies, it is hard to be able to publicly debate the notions and ideals that corporations pursue. Some choices that corporations take to make profits can affect people all over the world. Sometimes fatally.
The third industrial revolution is spreading from the developed world to some, but not all, parts of the developing world. To participate in this new global economy, developing countries must be seen as attractive offshore production bases for multinational corporations. To be such bases, developing countries must provide relatively well-educated workforces, good infrastructure (electricity, telecommunications, transportation), political stability, and a willingness to play by market rules.
If these conditions are in place, multinational corporations will transfer via their offshore subsidiaries or to their offshore suppliers, the specific production technologies and market linkages necessary to participate in the global economy. By themselves, developing countries, even if well-educated, cannot produce at the quality levels demanded in high-value-added industries and cannot market what they produce even in low-value-added industries such as textiles or shoes. Put bluntly, multinational companies possess a variety of factors that developing countries must have if they are to participate in the global economy.[
]
Outsourcing
Outsourcing, according to Grossman and Helpman, refers to the process of "subcontracting an ever expanding set of activities, ranging from product design to assembly, from research and development to marketing, distribution and after-sales service". Many companies have moved to outsourcing services in which they no longer specifically need or have the capability of handling themselves. This is due to considerations of what the companies can have more control over.[ Whatever companies tend to not have much control over or need to have control over will outsource activities to firms that they consider "less competing".][ According to SourcingMag.com, the process of outsourcing can take the following four phases.]
# strategic thinking
# evaluation and selection
# contract development
# outsourcing management
Outsourcing is among some of the many reasons for increased competition within developing countries.["http://www.international.ucla.edu/media/files/GlobalUnequal_10_252.pdf"] Aside from being a reason for competition, many First World countries see outsourcing, in particular offshore outsourcing
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...
, as an opportunity for increased income. As a consequence, the skill level of production in foreign countries handling the outsourced services increases within the economy; and the skill level within the domestic developing countries can decrease. It is because of competition (including outsourcing) that Robert Feenstra and Gordon Hanson predict that there will be a rise of 15–33 percent in inequality amongst these countries.
See also
* Developed country
* Developing country
* Digital divide
* East–West dichotomy
In sociology, the East–West dichotomy is the perceived difference between the Eastern and the Western worlds. Cultural and religious rather than geographical in division, the boundaries of East and West are not fixed, but vary according ...
* First World privilege
First World privilege is any advantages accrued by an individual by virtue of being a national of a First World country.
Overview
First-World privilege is often explicitly maintained by legal means such as immigration laws and trade barriers. F ...
* First World problem
__NOTOC__
First World problem is an informal term for the issues in First World nations that are complained about in response to the perceived absence of more pressing concerns. Although it has been described as "a subset of the fallacy of relat ...
* Fourth World
* Globalization
Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relation ...
* Multinational corporation
A multinational company (MNC), also referred to as a multinational enterprise (MNE), a transnational enterprise (TNE), a transnational corporation (TNC), an international corporation or a stateless corporation with subtle but contrasting senses, i ...
* National wealth
National net wealth, also known as national net worth, is the total sum of the value of a country's assets minus its liabilities. It refers to the total value of net wealth possessed by the residents of a state at a set point in time. This fig ...
* North–South divide
* Second World
The Second World is a term originating during the Cold War for the industrial socialist states that were under the influence of the Soviet Union. In the first two decades following World War II, 19 communist states emerged; all of these were at ...
* Third World
The term "Third World" arose during the Cold War to define countries that remained non-aligned with either NATO or the Warsaw Pact. The United States, Canada, Japan, South Korea, Western European nations and their allies represented the " First ...
* Three-world model
The terms '' First World'', ''Second World'', and ''Third World'' were originally used to divide the world's nations into three categories. The complete overthrow of the post–World War II status quo, known as the Cold War, left two (original ...
* World-systems theory
World-systems theory (also known as world-systems analysis or the world-systems perspective)Immanuel Wallerstein, (2004), "World-systems Analysis." In ''World System History'', ed. George Modelski, in ''Encyclopedia of Life Support Systems'' (E ...
References
{{Global economic classifications
Cold War terminology
Economic country classifications
Imperialism studies
Politics by region