The term "First World" refers to countries that are capitalist democracies, that are technologically advanced, and whose citizens have a high standard of living. Australia, Canada, Japan, Hong Kong, Taiwan, South Korea, the United States, and most of the countries of Western Europe are examples of First World countries. Since Hong Kong and Taiwan are a special administritive region, and qualify for their own economy and customs status, they are therefore listed as independent countries.

The First World is the developed world - US, Canada, Western Europe, Japan, Singapore, Taiwan, Australia, New Zealand. The Second World was the Communist world led by the USSR. With the demise of the USSR and the communist block, there is no longer an official Second World designation, although Russia, China, Vietnam, Laos and Cambodia have "communist" governments. The Third World is the underdeveloped world - agrarian, rural and poor. Many Third World countries have one or more developed cities, but the rest of the country is poor, rural and agrarian. Eastern Europe should probably be considered Third World. Russia should also be considered a Third World country with nuclear weapons. China, has always been considered part of the Third World, although it is industrializing, has nuclear weapons, and has urban centers of intense development. In general, Latin America, Mexico, Africa, and most of Asia are still considered Third World. The Asian tigers - South Korea, Malaysia, and Thailand, except for their big cities, their maquiladora-type production facilities, a small middle class and a much smaller ruling elite should probably be considered Third World countries as well, since their populations are overwhelmingly rural, agrarian and poor.
Some of the very poorest countries, especially in Africa, that have no industrialization, are almost entirely agrarian (subsistence farming), and have little or no hope of industrializing and competing in the world "marketplace", are sometimes termed the "Fourth World".