Second World

Dictionary Says

Definition of 'Second World'


1. A country that was once controlled by the Soviet Union. Second World countries were centrally planned economies, and also one party states. The use of the term to refer to Soviet countries largely fell out of use in the early 1990s, shortly after the end of the Cold War.

2. A country that is more stable and more developed than a third-world country but less-stable and less-developed than a first-world country. Examples of second-world countries by this definition include almost all of Latin and South America, Turkey, Thailand, South Africa and many others. Investors sometimes refer to second-world countries that appear to be headed toward first-world status as "emerging markets."

Some countries could be considered second-world by either of these two definitions.

Investopedia Says

Investopedia explains 'Second World'


1. Examples of second-world countries by this definition include Bulgaria, the Czech Republic, Hungary, Poland, Romania, Russia, China and others.



2. According to geo-strategist and London School of Economics doctorate Parag Khanna, there are about 100 countries that are neither first-world (OECD) nor third-world (least-developed, or LDC) countries. Khanna also points out that within the same country there can be a coexistence of first and second, second and third or first and third world characteristics. A country's major metropolitan areas may exhibit first-world characteristics while its rural areas exhibit third-world characteristics, for example.

comments powered by Disqus
Hot Definitions
  1. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  2. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  3. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  4. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  5. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  6. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
Trading Center