CHARACTERISTICS OF

THE THIRD WORLD

COUNTRIES
 Third World
"Third World" is a phrase commonly used to describe a
developing nation, but actually started as term used to describe a
country's allegiance. A Third World country is a country whose
views are not aligned with NATO and capitalism or the Soviet
Union and communism.
In present-day English, the Third World is "the developing
countries of Europe, Asia, Latin America, and Africa".
The “three worlds” of the Cold war era, as of the period between April 1975 and August
1975.
FIRST WORLD : United States, United Kingdom and their allies

SECOND WORLD : Soviet Union, China and their allies

THIRD WORLD : Neutral and non-aligned countries

Following is the list of third world countries in terms of human
development and press freedom according to UN, IMF and CIA World
Fact Book:
Togo Comoros Kenya Mauritania
Madagascar Haiti Pakistan Burkina Faso
Afghanistan Timor Leste Bangladesh Chad
Guinea Sierra Leone Chad Tunisia Somalia
Mozambique Nigeria Libya Yemen
Ethiopia Cuba Belarus Liberia
Mali North Korea Zambia Myanmar
Guinea Bissau Djibouti Uganda Senegal
Maldives Congo Lesotho Benin
Iraq Vietnam Nepal Cote de Ivoire
Iran Rwanda Kenya Gambia
 Major Characteristics of the Third World
Countries
 Low Level and Inadequate Living Standards
 Low Levels of Productivity
High Rates of Population Growth and Dependency Burdens
 High and Rising Levels of Unemployment and Under-Employment
Heavy Dependence on Agri-Production
 Shortage of Capital
Low Level and Inadequate Living Standards

 The third world countries are characterized with

low living levels. Not only the majority of the
population are poorer as compared with their
western counter-parts, but they are also wretched
financially in comparison with their own small elites
living in big towns and cities.
 Low levels of living can be observed both
quantitatively as well as qualitatively in the form of
low incomes, inadequate housing facilities, poor
health, limited or no education, high infant mortality
rates (IMR), low life and work expectancy, and a
general sense of malaise and hopelessness.
 Low Levels of Productivity

Third world countries are not only furnished

with low levels of living, but they are
characterized by low levels of labor
productivity.
It is the production function which establishes
a relation between inputs and outputs.
The low levels of incomes lead to low productivity in
the developing countries. As the poor nutrition in
childhood often restricts the mental and physical
growth of individuals.
Low incomes lead to low living levels and then to low
productivity levels
 High Rates of Population Growth and
Dependency Burdens

 The high birth rates in third world countries has led to enhance
the ratio of dependents.
 Children and the old aged person who do not contribute to work
are often referred to "Dependency Burden”. It is so in the sense
that they are non-productive members of the society and they are
financially supported by the working force
 In third world countries not only the birth rates are very high
but they alt have a greater dependency burden than first world
countries. Thus the population growth is becoming major obstacle
in the way of growth of third world countries.
 High and Rising Levels of Unemployment
and Under-Employment

The low levels of living in third world countries is also attributed

to inadequate or inefficient utilization of labor.

1) There is under-employment of labor i.e. the labor are working

less than what they could. The underemployment also denotes a
situation where the workers are working full time but their
productivity is so low that the displacement of so many workers
will not reduce the output.
2) There is an open unemployment of labor, that is the labor who
are not only capable, but also eager to work do not get the jobs.
 Heavy Dependence on Agri-Production

 The big majority of people in Third World countries live and

work in rural areas.
 The low agri. productivity in UDCs is attributed to primitive
technologies, poor organization, reduced use of modern inputs,
lack of storage facilities, limited agri. extension programs and
shortage of human and physical capital.
 In case of Third World countries’ agriculture sector is of
subsistence nature and lacks commercialization. The land tenure
system is very outdated; the tenants have to pay big rents to land
lords
 Shortage of Capital

 The capital is said to be the life blood of production.

Accordingly, the countries having the dearth of capital will
remain backward and poor.
 The shortage of capital in third world countries is attributed to
Vicious Circle of Poverty (VCP).
 This VCP comes into being because of low incomes. The low
incomes lead to low savings which lead to low investment and
the low purchasing power which leads to low income again.