The third world countries are known for their problems with corruption, unemployment and poverty. Most of the third world countries are in the developing world and have low income levels. The word “third world” evolved during the cold war to describe countries that remain non-aligned towards either NATO or Warsaw Pact.
These days, there are many development projects in third world countries like Latin America and Asia. There are also many aid programs and foreign investors investing in these countries. These countries, in turn, take care of the infrastructure, education, health and energy needs of the people, thus making them self-sufficient. However, they are yet to move from a developing to a developed country and therefore, their economy is still very dependent on their domestic market for its growth.
These developing countries have some of the fastest economic growth rates in the world and have achieved economic progress in a shorter period of time than the developed countries. Many of the countries such as China, India, Pakistan, Philippines and Thailand have become the leading economic powerhouse of the world due to their resource wealth. They have succeeded in taking advantage of low labor costs by using their low wages in their businesses and have grown at a fast pace. Therefore, one can say that the third world countries have been able to take advantage of lower costs in developing countries to gain more ground on the developed countries.