Just a detail that no one has picked up - there is no "third world" anymore. The first world was NATO. The second was the USSR. The third world was "everyone else".
That means that places like Switzerland were the "third world".
Now that the Soviet Union is long gone, the phrase makes little sense, given that there's no "second world" anymore.
I personally use "developed countries", "developing countries" and "failed states". (I understand that in political science they now talk about "fragile states" but people find that confusing for some reason.)
But now there's a big gap in nomenclature, because the US doesn't fit into any of these categories.
I tend to use "collapsing state" or "undeveloping country" myself.
None of the above contradicts a word of what you have said.
In conclusion, some beautiful music:
