First World

First World

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The concept of the First World first originated during the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...

, where it was used to describe countries that were aligned with the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. These countries were democratic
Democracy
Democracy is generally defined as a form of government in which all adult citizens have an equal say in the decisions that affect their lives. Ideally, this includes equal participation in the proposal, development and passage of legislation into law...

 and capitalistic
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

. After the fall of the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 and the end of the Cold War, the term "First World" took on a new meaning that was more applicable to the times. Since its original definition, the term First World has come to be largely synonymous with developed countries or highly developed countries (depending on which definition is being used).

First World countries in general have very advanced economies and very high Human Development Indices
Human Development Index
The Human Development Index is a composite statistic used to rank countries by level of "human development" and separate "very high human development", "high human development", "medium human development", and "low human development" countries...

. On the other hand, the United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...

 defined the First World on the wealth of the nation's Gross National Product (GNP). The definition of First World is now less concrete than during the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...

.

Global dynamics between the First World and the other Worlds were essentially split into two. Relationships with the Second World
Second World
The term "Second World" is a phrase used to describe those countries which are allied with or are supported by the "First World" countries . These include countries supported by the United States, such as Colombia, Israel, etc., and those supported by the former Soviet Union, also known as the the...

 were competitive, ideological and hostile. Relationships with Third World
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...

 countries were normally positive in theory, while some were quite negative in practice (e.g., wars). Present inter-world relationships are not so rigid, although there is a disparity in terms of the First World having more influence, wealth, information and advancements than the other worlds.

Globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...

 is an increasingly important phenomenon which has been fueled largely by the First World and its connections with the other worlds. An example of globalization within the First World is the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 which has brought much cooperation and integration to the region. Multinational corporation
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...

s also provide examples of the First World's impact on globalization, as they have brought economic, political and social integration in many countries. With the rise of the multinational corporation, the problem of outsourcing
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...

 has risen in many First World countries.

Definition


After World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, the world split into two large geopolitical blocs, separating into spheres of communism
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...

 and capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...

. This led to the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...

, during which the term First World was highly used because of its political, social, and economic relevance. The term itself was first introduced in the late 1940s by the United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...

. Today, the First World is slightly outdated and has no official definition, however it is generally thought of as the capitalist, industrial, developed countries that aligned with the United States after World War II. This definition included most of the countries of North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...

, Western Europe
Western Europe
Western Europe is a loose term for the collection of countries in the western most region of the European continents, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a geographic entity—the region lying in the...

, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

. In today's society the First World is viewed as countries who 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, US aligned states, neutral countries who were developed and industrialized, and the former British Colonies
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...

 which 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) and Japan. Countries were also placed into the First World based on how civilized the country was. According to Nations Online the member countries of NATO after the Cold War included:
  • Belgium
    Belgium
    Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...

    , Canada
    Canada
    Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

    , Denmark
    Denmark
    Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

    , France
    France
    The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

    , West Germany
    West Germany
    West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....

    , Greece
    Greece
    Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....

    , Iceland
    Iceland
    Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

    , Italy
    Italy
    Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

    , Luxembourg
    Luxembourg
    Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...

    , Netherlands
    Netherlands
    The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

    , Norway
    Norway
    Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

    , Portugal
    Portugal
    Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...

    , Spain
    Spain
    Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

    , Turkey
    Turkey
    Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

    , United Kingdom
    United Kingdom
    The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

     and the United States
    United States
    The United States of America is a federal constitutional republic comprising fifty states and a federal district...

    .

The US aligned countries included:
  • Israel
    Israel
    The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

    , Japan
    Japan
    Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

    , South Korea
    South Korea
    The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

     and Taiwan (ROC)
    Republic of China
    The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...

    .

The neutral countries included:
  • Austria
    Austria
    Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

    , Finland
    Finland
    Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...

    , Ireland
    Ireland
    Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...

    , Sweden
    Sweden
    Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

     and Switzerland
    Switzerland
    Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

    .

The former British colonies also included in the First World were:
  • Australia
    Australia
    Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

    , New Zealand
    New Zealand
    New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...

    , Canada
    Canada
    Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

     and the United States
    United States
    The United States of America is a federal constitutional republic comprising fifty states and a federal district...

    .

Human Development Index


The Human Development Index is a worldwide ranking where different indicators are used to classify countries based on their developmental status. Statistics like GNI
GNI
GNI may stand for:* Gesher New Instructions, a computer processor instruction set* Global Network Initiative, an Internet freedom and privacy organization* Greater Nagoya Initiative, a Japanese business model project...

, life expectancy
Life expectancy
Life expectancy is the expected number of years of life remaining at a given age. It is denoted by ex, which means the average number of subsequent years of life for someone now aged x, according to a particular mortality experience...

, and educational attainment
Educational attainment
Educational attainment is a term commonly used by statisticians to refer to the highest degree of education an individual has completed.The US Census Bureau Glossary defines educational attainment as "the highest level of education completed in terms of the highest degree or the highest level of...

 levels are combined to form a list of countries ranging from very high human development to low human development. The countries with very high human development ratings are said to be the most developed and industrialized countries in the world. If the classification of the First World is based on the definition above, the Human Development Index is a good indicator in identifying First World countries. Hence, according to the Human Development Index, forty-seven countries are ranked as having very high human development. Most of the countries on this list coincide with the data on countries listed in Nations Online. The countries that are listed as possessing a "very high human development" on the Human Development Index but not on the NATO list above include:
  • Andorra
    Andorra
    Andorra , officially the Principality of Andorra , also called the Principality of the Valleys of Andorra, , is a small landlocked country in southwestern Europe, located in the eastern Pyrenees mountains and bordered by Spain and France. It is the sixth smallest nation in Europe having an area of...

    , Argentina
    Argentina
    Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

    , Bahrain
    Bahrain
    ' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...

    , Barbados
    Barbados
    Barbados is an island country in the Lesser Antilles. It is in length and as much as in width, amounting to . It is situated in the western area of the North Atlantic and 100 kilometres east of the Windward Islands and the Caribbean Sea; therein, it is about east of the islands of Saint...

    , Brunei
    Brunei
    Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...

    , Chile
    Chile
    Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...

    , Croatia
    Croatia
    Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...

    , Cyprus
    Cyprus
    Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...

    , Czech Republic
    Czech Republic
    The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....

    , Estonia
    Estonia
    Estonia , officially the Republic of Estonia , is a state in the Baltic region of Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by Lake Peipsi and the Russian Federation . Across the Baltic Sea lies...

    , Hong Kong
    Hong Kong
    Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

    , Hungary
    Hungary
    Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

    , Latvia
    Latvia
    Latvia , officially the Republic of Latvia , is a country in the Baltic region of Northern Europe. It is bordered to the north by Estonia , to the south by Lithuania , to the east by the Russian Federation , to the southeast by Belarus and shares maritime borders to the west with Sweden...

    , Liechtenstein
    Liechtenstein
    The Principality of Liechtenstein is a doubly landlocked alpine country in Central Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over , and it has an estimated population of 35,000. Its capital is Vaduz. The biggest town is Schaan...

    , Lithuania
    Lithuania
    Lithuania , officially the Republic of Lithuania is a country in Northern Europe, the biggest of the three Baltic states. It is situated along the southeastern shore of the Baltic Sea, whereby to the west lie Sweden and Denmark...

    , Malta
    Malta
    Malta , officially known as the Republic of Malta , is a Southern European country consisting of an archipelago situated in the centre of the Mediterranean, south of Sicily, east of Tunisia and north of Libya, with Gibraltar to the west and Alexandria to the east.Malta covers just over in...

    , Poland
    Poland
    Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...

    , Qatar
    Qatar
    Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...

    , Singapore
    Singapore
    Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

    , Slovakia
    Slovakia
    The Slovak Republic is a landlocked state in Central Europe. It has a population of over five million and an area of about . Slovakia is bordered by the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south...

    , Slovenia
    Slovenia
    Slovenia , officially the Republic of Slovenia , is a country in Central and Southeastern Europe touching the Alps and bordering the Mediterranean. Slovenia borders Italy to the west, Croatia to the south and east, Hungary to the northeast, and Austria to the north, and also has a small portion of...

     and United Arab Emirates
    United Arab Emirates
    The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...

    .


Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...

's HDI is missing and Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...

 is not in the "very high human development" group.

Variations 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, 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). They were defined in terms of Gross National Product (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
Second World
The term "Second World" is a phrase used to describe those countries which are allied with or are supported by the "First World" countries . These include countries supported by the United States, such as Colombia, Israel, etc., and those supported by the former Soviet Union, also known as the the...

 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
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...

, while the fourth world
Fourth World
Fourth World refers to a sub-population subjected to social exclusion in global society, or stateless and notably impoverished or marginalized nations.Fourth World may also refer to:...

 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
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

 classifies countries according to their GNI
GNI
GNI may stand for:* Gesher New Instructions, a computer processor instruction set* Global Network Initiative, an Internet freedom and privacy organization* Greater Nagoya Initiative, a Japanese business model project...

 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. According to the World Bank the countries with the top GNP include:
  • Qatar
    Qatar
    Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...

    , Luxembourg
    Luxembourg
    Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...

    , Macau
    Macau
    Macau , also spelled Macao , is, along with Hong Kong, one of the two special administrative regions of the People's Republic of China...

    , Norway
    Norway
    Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

    , UAE, Kuwait
    Kuwait
    The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

    , Brunei
    Brunei
    Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...

    , Singapore
    Singapore
    Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

    , United States
    United States
    The United States of America is a federal constitutional republic comprising fifty states and a federal district...

    , Hong Kong
    Hong Kong
    Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...

    , Switzerland
    Switzerland
    Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....

     and the Netherlands
    Netherlands
    The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...

    .

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 end state 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
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

) 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 and the Warsaw Pact
Warsaw Pact
The Warsaw Treaty Organization of Friendship, Cooperation, and Mutual Assistance , or more commonly referred to as the Warsaw Pact, was a mutual defense treaty subscribed to by eight communist states in Eastern Europe...

 were created by the United States and The Soviet Union, respectively. They were also referred to as the Western Bloc and the Eastern Bloc
Warsaw Pact
The Warsaw Treaty Organization of Friendship, Cooperation, and Mutual Assistance , or more commonly referred to as the Warsaw Pact, was a mutual defense treaty subscribed to by eight communist states in Eastern Europe...

. The circumstances of these two blocks 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
Winston Churchill
Sir Winston Leonard Spencer-Churchill, was a predominantly Conservative British politician and statesman known for his leadership of the United Kingdom during the Second World War. He is widely regarded as one of the greatest wartime leaders of the century and served as Prime Minister twice...

'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
Demography is the statistical study of human population. It can be a very general science that can be applied to any kind of dynamic human population, that is, one that changes over time or space...

 Alfred Sauvy
Alfred Sauvy
Alfred Sauvy was a demographer, anthropologist and historian of the French economy. Sauvy coined the term Third World in reference to countries that were unaligned with either the Communist Soviet bloc or the Capitalist NATO bloc during the Cold War...

 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 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
Secwepemc
The Secwepemc , known in English as the Shuswap people, are a First Nations people residing in the Canadian province of British Columbia. Their traditional territory ranges from the eastern Chilcotin Plateau and the Cariboo Plateau southeast through the Thompson Country to Kamloops and the Shuswap...

 Chief George Manuel
George Manuel
George Manuel, OC was an Aboriginal leader in Canada. In the 1970s, he was chief of the National Indian Brotherhood .-Biography:...

 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
Fourth World
Fourth World refers to a sub-population subjected to social exclusion in global society, or stateless and notably impoverished or marginalized nations.Fourth World may also refer to:...

 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
First Nations is a term that collectively refers to various Aboriginal peoples in Canada who are neither Inuit nor Métis. There are currently over 630 recognised First Nations governments or bands spread across Canada, roughly half of which are in the provinces of Ontario and British Columbia. The...

). 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; with it, so did all applicability of the term Second World. The definitions of the First World and Third World changed slightly, yet generally described the same concepts.

Historic


During the Cold War Era, the relationships between the First World and the Second World and the First 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, by virtue of its name, 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
Truman Doctrine
The Truman Doctrine was a policy set forth by U.S. President Harry S Truman in a speech on March 12, 1947 stating that the U.S. would support Greece and Turkey with economic and military aid to prevent their falling into the Soviet sphere...

, Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

 (from the U.S) and the Molotov Plan
Molotov Plan
The Molotov Plan was the system created by the Soviet Union in 1947 in order to provide aid to rebuild the countries in Eastern Europe that were politically and economically aligned to the Soviet Union...

 (from the Soviet Union). The extent of the odds between the two worlds is evident in Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...

 - which was then split into East and West. In order to stop their citizens in East Berlin from having too much exposure to the capitalist West, the Soviet Union put up the Berlin Wall
Berlin Wall
The Berlin Wall was a barrier constructed by the German Democratic Republic starting on 13 August 1961, that completely cut off West Berlin from surrounding East Germany and from East Berlin...

 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 democracy and capitalism 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 proxy war
Proxy war
A proxy war or proxy warfare is a war that results when opposing powers use third parties as substitutes for fighting each other directly. While powers have sometimes used governments as proxies, violent non-state actors, mercenaries, or other third parties are more often employed...

s. Some examples include Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...

 and Korea
Korea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...

. 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 to be communist. The Domino Theory
Domino theory
The domino theory was a reason for war during the 1950s to 1980s, promoted at times by the government of the United States, that speculated that if one state in a region came under the influence of communism, then the surrounding countries would follow in a domino effect...

 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 US 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
Malaria is a mosquito-borne infectious disease of humans and other animals caused by eukaryotic protists of the genus Plasmodium. The disease results from the multiplication of Plasmodium parasites within red blood cells, causing symptoms that typically include fever and headache, in severe cases...

 and tuberculosis
Tuberculosis
Tuberculosis, MTB, or TB is a common, and in many cases lethal, infectious disease caused by various strains of mycobacteria, usually Mycobacterium tuberculosis. Tuberculosis usually attacks the lungs but can also affect other parts of the body...

 needlessly claim many lives in the developing countries of the Third World. 900,000 people die from malaria each year and combating malaria accounts for 40% of health spending in many African countries. Malaria as well as other diseases already conquered in the First World, wreak havoc in the Third World, trapping "communities in a downward spiral of poverty." However, many First World countries are making plans to help Third World countries gain access to information and advancements. U.S. President Barack Obama has pledged to "end deaths by malaria by 2015" by achieving "universal access to proven, low-cost malaria treatment and prevention efforts."

The International Corporation for Assigned Names and Numbers (ICANN
ICANN
The Internet Corporation for Assigned Names and Numbers is a non-profit corporation headquartered in Marina del Rey, California, United States, that was created on September 18, 1998, and incorporated on September 30, 1998 to oversee a number of Internet-related tasks previously performed directly...

) recently announced that the first Internationalized Domain Names (IDNs) will be available as soon as 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 come through television, commercial advertisements and foreign visitors to their countries. This exposure causes two changes: a) living standards in some Third World countries rises and b) this exposure creates hopes and many from Third World countries immigrate - both legally and illegally - to these First World countries in hopes to attain that living standard and prosperity. In fact, this immigration is the "main contributor to the increasing populations of U.S. and Europe." While these immigrations have greatly contributed to globalization, they have also precipitated trends like brain drain
Brain drain
Human capital flight, more commonly referred to as "brain drain", is the large-scale emigration of a large group of individuals with technical skills or knowledge. The reasons usually include two aspects which respectively come from countries and individuals...

 and problems with repatriation
Repatriation
Repatriation is the process of returning a person back to one's place of origin or citizenship. This includes the process of returning refugees or soldiers to their place of origin following a war...

. They have also created immigration and governmental burden problems for the countries (i.e. First World) to which people are immigrating.

Environmental impact


It has been argued that the most important human population problem for the world is not the high rate of population increase in certain Third World countries, but rather the "increase in total human impact." The per-capita impact - the resources consumed and the wastes created by each person - is varied globally; the highest being in the First World and the lowest in the Third World: inhabitants of the U.S., Western Europe and Japan consume 32 times as much resources and put out 32 times as much waste than those 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 fuel
Fossil fuel
Fossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...

s, First World countries drew attention to environmental pollution. The Kyoto Protocol
Kyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...

 is a treaty that is based on the United Nations Framework Convention on Climate Change
United Nations Framework Convention on Climate Change
The United Nations Framework Convention on Climate Change is an international environmental treaty produced at the United Nations Conference on Environment and Development , informally known as the Earth Summit, held in Rio de Janeiro from June 3 to 14, 1992...

, 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
Modernization theory
Modernization theory is a theory used to explain the process of modernization within societies. The theory looks at the internal factors of a country while assuming that, with assistance, "traditional" countries can be brought to development in the same manner more developed countries have...

 and development theory
Development theory
Development theory is a conglomeration of theories about how desirable change in society is best to be achieved. Such theories draw on a variety of social scientific disciplines and approaches.-Modernization theory:...

 developed in the West as a result of their economic, political, social, and cultural response to the management of former colonial territories. Western 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 Western liberal capitalist example of a so-called "First World state." Therefore, the modernization and development tradition consciously originated as a Western (mostly U.S.) alternative to the Marxist and neo-Marxist strategies promoted by the "Second World
Second World
The term "Second World" is a phrase used to describe those countries which are allied with or are supported by the "First World" countries . These include countries supported by the United States, such as Colombia, Israel, etc., and those supported by the former Soviet Union, also known as the the...

 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's ESCWA has written that globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...

 "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 University is a public university located in San Jose, California, United States...

 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
Silk Road
The Silk Road or Silk Route refers to a historical network of interlinking trade routes across the Afro-Eurasian landmass that connected East, South, and Western Asia with the Mediterranean and European world, as well as parts of North and East Africa...

 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."

World Trade Organization


As defined by its website, the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...

 (WTO) is "is the only global international organization dealing with the rules of trade between nations." Established not long ago in 1995, its predecessor was the General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization . GATT was signed in 1947 and lasted until 1993, when it was replaced by the World...

 (GATT). This organization focuses on economic growth and development in regards to negotiations amongst international trading.

Some of the 153 countries belonging to the WTO are considered developed countries like the United States, and the European Union. Countries like China, Brazil, India and South Africa are considered some of the most influential members within the WTO. Developing countries are said to receive special treatment and provisions according to certain agreements held by the WTO. This special treatment could be defined as: "including longer time periods to implement agreements and commitments, measures to increase their trading opportunities and support to help them build the infrastructure for WTO work, handle disputes, and implement technical standards." The use (or misuse) of these privileges can be, and ofen are, questioned and challenged by other members. Amongst these developing countries are smaller, more intricate groups a.k.a. alliances. The Cairns group of seventeen is composed of developed and developing nations, and has existed since the mid-1980s. While this alliance has seemed to disappear over the years, another group of twenty or "G-20" has risen; made up of countries like India, China Egypt, Argentina and South Africa. Various groups continues to develop to handle such issues as development, membership, and regional trade.

European Union


The most prominent example of globalization in the first world is the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

 (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 4324782 square kilometres (1,669,807.7 sq mi) with roughly half a billion 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 herself, "The future of the EU is linked to globalization...the EU has a crucial role to play in making globalization work properly...".

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
European Coal and Steel Community
The European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for the modern-day developments of the European Union...

 (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
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...

, the creation of the European Monetary Institute
European Monetary Institute
The European Monetary Institute was the forerunner of the European Central Bank , 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 took over from the earlier European Monetary Cooperation Fund...

, and the opening of the European Central Bank
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...

.

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 & 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
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...

s find their origins in First World countries. After the fall of communism, multinational corporations proliferated as more countries focused on global trade. The series of General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade
The General Agreement on Tariffs and Trade was negotiated during the UN Conference on Trade and Employment and was the outcome of the failure of negotiating governments to create the International Trade Organization . GATT was signed in 1947 and lasted until 1993, when it was replaced by the World...

 (GATT) and later the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...

 (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
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...

 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. Why? What it all comes down to is what the companies can have more control over. Whatever companies tend to not have much control, or need to have control, will outsource activities to firms that they consider "less competing." According to SourcingMag.com, the process of outsourcing can take four phases: 1) Strategic Thinking, 2) Evaluation and Selection, 3) Contract Development and 4) Outsourcing Management.

Outsourcing is among some of the many reasons for increased competition within developing countries. Aside from being a reason for competition, many First World countries see outsourcing, in particular Offshore outsourcing
Offshore outsourcing
Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured. It can be contrasted with offshoring, in which the functions are performed in a foreign...

, 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

  • Three Worlds Theory
    Three Worlds Theory
    The Three Worlds Theory , developed by Chinese Communist leader Mao Zedong , posited that international relations comprise three politico–economic worlds: the First World, the superpowers, the Second World, the superpowers' allies, and the Third World, the nations of the Non-Aligned...

  • Second World
    Second World
    The term "Second World" is a phrase used to describe those countries which are allied with or are supported by the "First World" countries . These include countries supported by the United States, such as Colombia, Israel, etc., and those supported by the former Soviet Union, also known as the the...

  • Third World
    Third World
    The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...

  • Fourth World
    Fourth World
    Fourth World refers to a sub-population subjected to social exclusion in global society, or stateless and notably impoverished or marginalized nations.Fourth World may also refer to:...

  • Globalization
    Globalization
    Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...

  • Multinational Corporation
    Multinational corporation
    A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...

  • North-South divide
    North-South divide
    The north–south divide is a socio-economic and political division that exists between the wealthy developed countries, known collectively as "the north", and the poorer developing countries , or "the south." Although most nations comprising the "North" are in fact located in the Northern Hemisphere ,...

  • Digital divide
    Digital divide
    The Digital Divide refers to inequalities between individuals, households, business, and geographic areas at different socioeconomic levels in access to information and communication technologies and Internet connectivity and in the knowledge and skills needed to effectively use the information...