Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
A first-world country is a country with a developed economy, high standard of living, and democratic form of government. Typically, these countries are considered economically and politically stable. The term “first-world country” is somewhat outdated in 2023, though, with many considering the term too vague, overly simplistic, and downright offensive. Read on to learn the history of the term, as well as how it’s evolved over time.
A first-world country is a wealthy country that has an industrialized economy, a democratic government, a strong infrastructure, and adheres to the rule of law. While the label is somewhat imprecise, the United States and Canada, Western European countries, Australia, New Zealand, Japan, and South Korea have long been considered first-world countries.
Common characteristics of first-world countries include:
The “three-world concept” for describing countries evolved in the 1970s during the Cold War era. Although the origins of the model aren’t entirely clear, here’s how first-, second-, and third-world countries have been defined:
Terms like “first world” and “third world” are increasingly becoming antiquated. Critics argue that labeling countries in such terms carries racial connotations. Countries once labeled “first-world countries” are often referred to today as developed countries, industrialized nations, or wealthier countries, while those once considered “third-world countries” are frequently described as developing nations or low-income countries.
Another problem with labels like “first world” and “third world” is that they’re overly simplistic. For example, the United States has long been considered part of the first world. Although it has a high GDP per capita, it also scores a relatively high 41.4 on the Gini index, a measure of income inequality, roughly on par with the West African nation of Cote d’Ivoire and Bulgaria.
Switzerland is a prime example of a developed country. When the United Nations released its latest Human Development Index scores in September 2022, Switzerland topped the list for the first time. Scores were based on 2021 data from 191 countries.
During 2021, many countries experienced a drop in life expectancy due to COVID-19 and were still reeling from the economic ravages of the pandemic. Life expectancy rose to 84 years, up from 83.1 in 2020. Switzerland also saw its per capita income surge to $93,457 in 2021, a sharp rise from 2020, when it was $86,850.
The UN reported that 90% of countries experienced a drop in HDI scores in 2020 or 2021, making Switzerland one of just a handful that improved their scores. The report noted that gender parity was one area of potential improvement for the Western European country.
