Third world countries are categorized as the developing nations which are still in an ongoing struggle for development according to the recent definition of the third world. These countries are comparatively less developed in terms of their economic, political and social conditions and are facing high rates of poverty and unemployment.
The global power structure has divided countries into rich and poor countries. Foreign dependency generally depicts that the developing countries rely on funds and advanced technology including the import and export from developed countries so that these countries could maintain a stable pace of growth. Third world countries are majorly former colonies which were ruled by rich countries in the past. The economies of third world nations were focused on the production of raw material which were destined for the manufacturing industries especially in West which is home to rich countries like the US, UK, Canada, Sweden, etc. the manufactured goods were then sold back to these former colonies at a high profit and it is still happening.
Foreign aid is also one of the crucial factors when the global dependency is under discussion. Foreign aid plays a positive role in the field of third world economies and politics. Much of the foreign capital in these countries comes from outside its borders in the form of foreign aid. Foreign firms from rich countries also dominate the local market and discourage the growth of local industries to continue the tradition of dominant power if developed countries over third world nations.