Is Taiwan a First World Country?

Many of you have heard of Taiwan. It is a small island nation located in the East of China. Officially known as the Republic of China, this country is popular for its Electronics industries and the world-famous Taipei 101 skyscraper. Taiwan is indeed among the most advanced countries in the Asia-Pacific. 

So is Taiwan a first world country? The colloquial usage of the term “first world country” can definitely be applied to describe Taiwan. But from the point of view of the historical “three-worlds” theory – where the terms “first world country” and “third world country” originate – Taiwan is a third-world country. 

Confused? In this article, we will try to clear this matter up. We will give you insights into how developed Taiwan is and why it is that even so, it is considered a third world country. We will then proceed to analyze the relevance of the three-worlds theory in the modern age. Read on!

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Is Taiwan a developed country?

You might be surprised to learn that according to the CIA World Factbook, as of 2016, Taiwan was still considered a developing country. The country also maintained the status of a developing economy in the World Trade Organization until recently. But despite all this, Taiwan is definitely among the developed countries.

The country has a GDP per capita of $39,767. The average life expectancy of its citizens is 79, and the infant mortality rate is 4 in 1000. A better metric for all of these factors is perhaps the Human Development Index. Taiwan has an impressive HDI score of 0.88, one of the highest in the Asia-Pacific. 

So why, one could ask, is Taiwan still considered a third world country? 

We have pointed out above how, despite being a fully developed nation, Taiwan is still, technically speaking, a third-world country. But why is that so? 

To understand this, we must first understand what a third world country actually is. There are two meanings we need to differentiate: the original meaning and the colloquial meaning that most people associate the phrase “third world country” with. 

What is a third world country?

When you think of a third world country, you usually think of nation-states with poor, struggling economies like India, Sudan, Nigeria, Congo, or Bangladesh. Conversely, when you think of a first world country, you think of industrialized and developed countries like the UK, the US, Japan, South Korea or Norway.

But it might surprise you to know that there are some very countries like Saudi Arabia, Qatar (fifth-highest per capita nominal GDP), and Taiwan that are categorized as third-world countries. This inaccurate denomination can be traced back to the Cold War.

The three-worlds theory was developed at a time when the power in the world had polarized dangerously into two sides, the US and the Soviet Union. During this period, known as the Cold War, the US, and the Soviet Union, the two superpowers were considered to be the first world.

Countries like the UK, Canada, France, West Germany, Japan, etc. were designated as belonging to the second world. But as you may have guessed, there was also the third world.

All of the nations of the world that were not committed to supporting either of the two superpowers or did not have enough power to make a valued ally were designated as belonging to the third-world. These included the nations of Africa, Latin America, and continental Asia. 

This is how, despite being allied with the United States, Taiwan went on to be considered a third-world country. Also, since most of these third-world countries at the time were developing/struggling economies, the term “third-world” was permanently associated with a poor country. 

Is the three-worlds theory relevant in the 21st century?

This may lead the reader to wonder whether the three-worlds theory is relevant at all in the modern context. And the short answer is: It is not. 

Since the fall of the Soviet Union in the early 1990s, the original three-worlds theory no longer became relevant. But a lot has changed in the last 30 years, especially with the emergence of China as the de facto opponent to the US in place of Russia. 

Today, not only the US, but also countries like the UK, Germany, France, etc. are considered to be first-world. The terminology has changed in meaning to signify a developed nation.

And Taiwan in 2020 is definitely a developed nation. And it does have a small yet powerful military that can definitely aid the western powers should a war break out between them and China. But the ROC is not quite on par with countries like the US, the UK, or Germany.

And if you think about it, there is something problematic with the very notion of these countries serving as the standard for development.

Status switched to Developed Country in the World Trade Organization

Until 2018, Taiwan held the status of a developing economy in the World Trade Organization. Taiwan had long been struggling to maintain its international profile, as China had been attempting to isolate the island nation using its diplomatic might abroad.

Taiwan’s decision to change its WTO status was motivated by a desire to differentiate itself from the People’s Republic of China, which is still considered a developing country.

Trump has long been complaining about how China has been receiving preferential treatment compared with the Western powers, owing to its developing nation status. The WTO does indeed guarantee developing nations with special and differential (S&D) treatments.

And a country like China, which has the world’s second-largest economy and the third-largest military, has been accused by the international community of using the S&D advantage in its trade negotiations. 

Taiwan’s decision to change its status made much sense at the time. As we have mentioned before in this article, Taiwan enjoys a lot of facilities and luxuries of a developed nation. Its nominal GDP per capita, for instance, is a whopping $25,000, way above China’s $10,000. 

Taiwan’s decision to sacrifice all the perks and advantages that a developing nation gets for the status of a developed nation was welcomed by its long time ally, the United States. 

This decision in 2018 was motivated by a desire to differentiate itself from mainland China, and also muster international alliances by showing more responsibility in the international stage.

But in the context of this particular article, all that matters is that as of 2020, Taiwan is identified as a developed nation by the World Trade Organization.

Conclusion

We have become accustomed to using the term “first world” to identify developed countries and “third world” to identify the struggling ones. 

The truth is that the historical context that gave rise to this economic association with the three-worlds theory is no longer valid. This has made the three-worlds theory kind of irrelevant in the modern context. For instance, there are many third world countries with advanced economies.

So, to summarize everything we covered in this article, Taiwan was a third-world country, and in the context of that original demarcation, it probably still is.

But that division is no longer relevant. As of 2020, the ROC has one of the most advanced economies in the world. It also has a high HDI score, and it is one of the most industrialized and developed countries in the world. 

So, if what you mean by a third world country is one that is poor and has a struggling economy, then Taiwan is what you would call a first world country. But according to the original division, it is not.