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The "first world" was the "old world," or basically Europe, before the discovery of the Americas. The "second world" was the Americas, discovered by Columbus. The phrase "third world" originally meant the rest of the world not included in the "first" or "second" worlds. Its meaning has changed over time so that now it means the poverty-stricken portions of the world.

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Q: Why is it called the third world what are the first and second worlds?
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