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Yes, in the case of referring to the countries characterized by what we call "Third World," then yes, as I understand. But in an arbitrary sentence talking about say, a third planet or something, like "it's almost the same as our world but there's a second and a third world" then no capitalization is needed. Excuse the horrible example.

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13y ago
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12y ago

When used as a noun, yes.

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Q: Capitalize third world
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