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The concept of the First World was originally one of the " Three Worlds" formed by the global political landscape of the
Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...
, as it grouped together those countries that were aligned with the Western Bloc of the United States. This grouping was directly opposed to the Second World, which similarly grouped together those countries that were aligned with the
Eastern Bloc The Eastern Bloc, also known as the Communist Bloc (Combloc), the Socialist Bloc, the Workers Bloc, and the Soviet Bloc, was an unofficial coalition of communist states of Central and Eastern Europe, Asia, Africa, and Latin America that were a ...
of the
Soviet Union The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
. However, after the Cold War ended with the
dissolution of the Soviet Union The Soviet Union was formally dissolved as a sovereign state and subject of international law on 26 December 1991 by Declaration No. 142-N of the Soviet of the Republics of the Supreme Soviet of the Soviet Union. Declaration No. 142-Н of ...
in 1991, the definition largely shifted to instead refer to any country with a well-functioning democratic system with little prospects of political risk, in addition to a strong
rule of law The essence of the rule of law is that all people and institutions within a Body politic, political body are subject to the same laws. This concept is sometimes stated simply as "no one is above the law" or "all are equal before the law". Acco ...
, a capitalist economy with economic stability, and a relatively high mean
standard of living Standard of living is the level of income, comforts and services available to an individual, community or society. A contributing factor to an individual's quality of life, standard of living is generally concerned with objective metrics outsid ...
. Various ways in which these metrics are assessed are through the examination of a country's GDP, GNP,
literacy rate Literacy is the ability to read and write, while illiteracy refers to an inability to read and write. Some researchers suggest that the study of "literacy" as a concept can be divided into two periods: the period before 1950, when literacy was ...
,
life expectancy Human life expectancy is a statistical measure of the estimate of the average remaining years of life at a given age. The most commonly used measure is ''life expectancy at birth'' (LEB, or in demographic notation ''e''0, where '' ...
, and
Human Development Index The Human Development Index (HDI) is a statistical composite index of life expectancy, Education Index, education (mean years of schooling completed and expected years of schooling upon entering the education system), and per capita income i ...
. In colloquial 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 (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
, the world split into two large geopolitical blocs, separating into spheres of
communism Communism () is a political sociology, sociopolitical, political philosophy, philosophical, and economic ideology, economic ideology within the history of socialism, socialist movement, whose goal is the creation of a communist society, a ...
and
capitalism Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...
. This led to the
Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...
, 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 the Earth, global intergovernmental organization established by the signing of the Charter of the United Nations, UN Charter on 26 June 1945 with the stated purpose of maintaining international peace and internationa ...
. Today, the terms are slightly outdated and have no official definition. However, the "First World" is generally thought of as the capitalist, industrial, wealthy, and developed countries. This definition includes the countries of
North America North America is a continent in the Northern Hemisphere, Northern and Western Hemisphere, Western hemispheres. North America is bordered to the north by the Arctic Ocean, to the east by the Atlantic Ocean, to the southeast by South Ameri ...
and
Western Europe Western Europe is the western region of Europe. The region's extent varies depending on context. The concept of "the West" appeared in Europe in juxtaposition to "the East" and originally applied to the Western half of the ancient Mediterranean ...
,
Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
,
South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia. It constitutes the southern half of the Korea, Korean Peninsula and borders North Korea along the Korean Demilitarized Zone, with the Yellow Sea to the west and t ...
,
Australia Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...
, and
New Zealand New Zealand () is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and List of islands of New Zealand, over 600 smaller islands. It is the List of isla ...
. 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 ; , OTAN), also called the North Atlantic Alliance, is an intergovernmental organization, intergovernmental Transnationalism, transnational military alliance of 32 Member states of NATO, member s ...
, U.S.-aligned states, neutral countries that were developed and industrialized, and the former British Colonies that were considered developed. According to Nations Online, the member countries of NATO during the Cold War included: *
Belgium Belgium, officially the Kingdom of Belgium, is a country in Northwestern Europe. Situated in a coastal lowland region known as the Low Countries, it is bordered by the Netherlands to the north, Germany to the east, Luxembourg to the southeas ...
,
Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...
,
Denmark Denmark is a Nordic countries, Nordic country in Northern Europe. It is the metropole and most populous constituent of the Kingdom of Denmark,, . also known as the Danish Realm, a constitutionally unitary state that includes the Autonomous a ...
,
France France, officially the French Republic, is a country located primarily in Western Europe. Overseas France, Its overseas regions and territories include French Guiana in South America, Saint Pierre and Miquelon in the Atlantic Ocean#North Atlan ...
,
Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
,
Greece Greece, officially the Hellenic Republic, is a country in Southeast Europe. Located on the southern tip of the Balkan peninsula, it shares land borders with Albania to the northwest, North Macedonia and Bulgaria to the north, and Turkey to th ...
,
Iceland Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and Europe. It is culturally and politically linked with Europe and is the regi ...
,
Italy Italy, officially the Italian Republic, is a country in Southern Europe, Southern and Western Europe, Western Europe. It consists of Italian Peninsula, a peninsula that extends into the Mediterranean Sea, with the Alps on its northern land b ...
,
Luxembourg Luxembourg, officially the Grand Duchy of Luxembourg, is a landlocked country in Western Europe. It is bordered by Belgium to the west and north, Germany to the east, and France on the south. Its capital and most populous city, Luxembour ...
, the
Netherlands , Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...
,
Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. The remote Arctic island of Jan Mayen and the archipelago of Svalbard also form part of the Kingdom of ...
,
Portugal Portugal, officially the Portuguese Republic, is a country on the Iberian Peninsula in Southwestern Europe. Featuring Cabo da Roca, the westernmost point in continental Europe, Portugal borders Spain to its north and east, with which it share ...
,
Spain Spain, or the Kingdom of Spain, is a country in Southern Europe, Southern and Western Europe with territories in North Africa. Featuring the Punta de Tarifa, southernmost point of continental Europe, it is the largest country in Southern Eur ...
,
Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...
, 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 Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...
, and the
United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
. The US Aligned States included: *
Israel Israel, officially the State of Israel, is a country in West Asia. It Borders of Israel, shares borders with Lebanon to the north, Syria to the north-east, Jordan to the east, Egypt to the south-west, and the Mediterranean Sea to the west. Isr ...
,
Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
,
South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia. It constitutes the southern half of the Korea, Korean Peninsula and borders North Korea along the Korean Demilitarized Zone, with the Yellow Sea to the west and t ...
, and
Taiwan Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...
Former British Colonies included: *
Australia Australia, officially the Commonwealth of Australia, is a country comprising mainland Australia, the mainland of the Australia (continent), Australian continent, the island of Tasmania and list of islands of Australia, numerous smaller isl ...
and
New Zealand New Zealand () is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and List of islands of New Zealand, over 600 smaller islands. It is the List of isla ...
. Neutral and more or less industrialized capitalist countries included: *
Austria Austria, formally the Republic of Austria, is a landlocked country in Central Europe, lying in the Eastern Alps. It is a federation of nine Federal states of Austria, states, of which the capital Vienna is the List of largest cities in Aust ...
,
Ireland Ireland (, ; ; Ulster Scots dialect, Ulster-Scots: ) is an island in the North Atlantic Ocean, in Northwestern Europe. Geopolitically, the island is divided between the Republic of Ireland (officially Names of the Irish state, named Irelan ...
,
Sweden Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...
, and
Switzerland Switzerland, officially the Swiss Confederation, is a landlocked country located in west-central Europe. It is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland ...
.


Shifting in definitions

Since the end of the
Cold War The Cold War was a period of global Geopolitics, geopolitical rivalry between the United States (US) and the Soviet Union (USSR) and their respective allies, the capitalist Western Bloc and communist Eastern Bloc, which lasted from 1947 unt ...
, 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 (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 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, Taiwan, Japan, South Korea, the Southern Cone, NATO, Western European countries and oth ...
, 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 Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
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 Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
) 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 ; , OTAN), also called the North Atlantic Alliance, is an intergovernmental organization, intergovernmental Transnationalism, transnational military alliance of 32 Member states of NATO, member s ...
and the
Warsaw Pact The Warsaw Pact (WP), formally the Treaty of Friendship, Co-operation and Mutual Assistance (TFCMA), was a Collective security#Collective defense, collective defense treaty signed in Warsaw, Polish People's Republic, Poland, between the Sovi ...
were created by the United States and the Soviet Union, respectively. They were also referred to as the Western Bloc and the
Eastern Bloc The Eastern Bloc, also known as the Communist Bloc (Combloc), the Socialist Bloc, the Workers Bloc, and the Soviet Bloc, was an unofficial coalition of communist states of Central and Eastern Europe, Asia, Africa, and Latin America that were a ...
. 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 1874 – 24 January 1965) was a British statesman, military officer, and writer who was Prime Minister of the United Kingdom from 1940 to 1945 (Winston Churchill in the Second World War, ...
'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 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 use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...
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.


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 and Marshall Plan (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 of Germany, capital and largest city of Germany, by both area and List of cities in Germany by population, population. With 3.7 million inhabitants, it has the List of cities in the European Union by population withi ...
-- 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 erected the
Berlin Wall The Berlin Wall (, ) was a guarded concrete Separation barrier, barrier that encircled West Berlin from 1961 to 1989, separating it from East Berlin and the East Germany, German Democratic Republic (GDR; East Germany). Construction of the B ...
within the 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, officially the Socialist Republic of Vietnam (SRV), is a country at the eastern edge of mainland Southeast Asia, with an area of about and a population of over 100 million, making it the world's List of countries and depende ...
and
Korea Korea is a peninsular region in East Asia consisting of the Korean Peninsula, Jeju Island, and smaller islands. Since the end of World War II in 1945, it has been politically Division of Korea, divided at or near the 38th parallel north, 3 ...
. 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 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 disease, mosquito-borne infectious disease that affects vertebrates and ''Anopheles'' mosquitoes. Human malaria causes Signs and symptoms, symptoms that typically include fever, Fatigue (medical), fatigue, vomitin ...
and
tuberculosis Tuberculosis (TB), also known colloquially as the "white death", or historically as consumption, is a contagious disease usually caused by ''Mycobacterium tuberculosis'' (MTB) bacteria. Tuberculosis generally affects the lungs, but it can al ...
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 The Internet Corporation for Assigned Names and Numbers (ICANN ) is a global multistakeholder group and nonprofit organization headquartered in the United States responsible for coordinating the maintenance and procedures of several dat ...
) 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. 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, 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 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 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 the Earth, global intergovernmental organization established by the signing of the Charter of the United Nations, UN Charter on 26 June 1945 with the stated purpose of maintaining international peace and internationa ...
's ESCWA has written that
globalization Globalization is the process of increasing interdependence and integration among the economies, markets, societies, and cultures of different countries worldwide. This is made possible by the reduction of barriers to international trade, th ...
"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, public research university in San Jose, California. Established in 1857, SJSU is the List of oldest schools in California, oldest public university on the West Coast of ...
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 The Silk Road was a network of Asian trade routes active from the second century BCE until the mid-15th century. Spanning over , it played a central role in facilitating economic, cultural, political, and religious interactions between the ...
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 union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
(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 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 The European Coal and Steel Community (ECSC) was a European organization created after World War II to integrate Europe's coal and steel industries into a single common market based on the principle of supranationalism which would be governe ...
(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 (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...
, the creation of the European Monetary Institute, and the opening of the
European Central Bank The European Central Bank (ECB) is the central component of the 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 Big Four (banking)#International ...
. 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 corporation (MNC; also called a multinational enterprise (MNE), transnational enterprise (TNE), transnational corporation (TNC), international corporation, or stateless corporation, is a corporate organization that owns and cont ...
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 headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...
(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 is a business practice in which companies use external providers to carry out business processes that would otherwise be handled internally. Outsourcing sometimes involves transferring employees and assets from one firm to another ...
, 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, 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

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Developed country A developed country, or advanced country, is a sovereign state that has a high quality of life, developed economy, and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for eval ...
* Developing country * Digital divide * East–West dichotomy * First World privilege * First World problem * Fourth World *
Global North and Global South Global North and Global South are terms that denote a method of grouping countries based on their defining characteristics with regard to socioeconomics and Global politics, politics. According to UN Trade and Development (UNCTAD), the Global S ...
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Globalization Globalization is the process of increasing interdependence and integration among the economies, markets, societies, and cultures of different countries worldwide. This is made possible by the reduction of barriers to international trade, th ...
* List of countries by total wealth *
Multinational corporation A multinational corporation (MNC; also called a multinational enterprise (MNE), transnational enterprise (TNE), transnational corporation (TNC), international corporation, or stateless corporation, is a corporate organization that owns and cont ...
* Second World *
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, Taiwan, Japan, South Korea, the Southern Cone, NATO, Western European countries and oth ...
* Three-world model * World-systems theory


References

{{Global economic classifications Cold War terminology Economic country classifications Imperialism studies Politics by region