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It depends on how you define your terms.

Most people use the term "First World Country" to refer to a country that has a modern economy and is developed (as opposed to developing). Israel is one of the few post-colonial countries that has become a developed country. South Korea is another. As a result, these places are called First World Countries.

However, during the Cold War, the terms First World, Second World, and Third World applied to distinct parts of the globe. First World referred to Anglo-America and Western Europe, the NATO countries. Second World referred to the Soviet Union and its allies. The Third World referred to most of the countries of Latin America, Africa, and Asia, which served as the proxy war battlegrounds. According to this definition, Israel is a Third World Country since it lies in the Third World region.

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