The origin of the terms 1st, 2nd, and 3rd world countries came out of the Cold War.

A "1st world" country was any country who was allied with the United States.

"2nd world" countries were allied with Russia.

"3rd world" countries were ones who weren't on either side.

It just so happened that when you divided the map that way it also usually correlated with the poverty/quality of life levels in those countries.

Over time, the meaning of the terms started to shift in popular culture to describe how developed or underdeveloped a country was.

"The term 1st world referred to a country that was aligned with the United States and other western nations in opposition to the former-Soviet Union and its allies. Since the collapse of the Soviet Union in 1991, this use of the term has largely evolved" https://www.investopedia.com/terms/f/first-world.asp

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