Home ›› 08 May 2023 ›› Editorial
“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 meaning has 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.
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 that first world countries 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 world countries 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.
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.
investopedia.com