Assessing Perus Status Is It a Third World Country

Peru is a country in the global South, situated on the western Pacific coast of South America. The current estimated population is approximately 34 million, consisting of over forty indigenous tribes. Spanish is spoken as the official language. Despite its vast traditions and natural resources, the country grapples with uneven development and inequalities, which question whether it should be categorized as a 'third-world ' country or as a middle-income country. For that reason, this essay will examine the historical context of the term ‘third world,’ the economic indicators of Peru, political and governance, environmental challenges, and social context.

Third-world Country Origin

According to Osondu (2011), the origin of the term ''third world'' has been theorized by various researchers for decades. Since Alfred Sauvy's 1952 description of the term ''third world'' it has slowly eroded into the 21st-century understanding of the term. However, it became popularized in 1955 at the 1st Non-Aligned Movement conference held in Bandung. It was during this time that newly decolonized countries that had received independence started to identify themselves with the term in the hopes of pursuing neutral, unaligned foreign policies and not choose sides between the capitalist economies (of North America and Western Europe) and communist countries (of Eastern Europe and the Soviet Union). The term was first used politically and not economically, and it is a product of the Cold War between capitalist and communist countries (Osondu, 2011). Nonetheless, with recent developments and evolution in the increase in self-awareness and self-consciousness, the term 'third world ' may seem derogatory; hence, substitutions such as developing country or emerging economies are used.

Historical Context

The Cold War began soon after World War II, transforming almost half of the 20th century. The war was purely between the communist, that is, the Soviet Union, and the capitalist, that was the United States. Meanwhile, countries that were not involved in these conflicts were third-world countries that were not economically and strategically capable of being in either category (Qadir, 2024). According to Andrews (2025), the term 'third world' is often used to refer to 'poor ' or ' developing' nations, while many Western countries are considered ‘first world’ nations, and we rarely hear about 'second world' nations. These distinctions and descriptions are a result of geopolitics created by the Cold War. Many scholars avoid the term 'third-world’ because it is considered to be degrading and a basis for stigmatization of other nations that are considered economically behind. Blanket terms such as 'developing', 'global south', 'middle-income', and 'emerging' have since been adopted. Given this notion, it is important to assess Peru's performance using modern developmental indicators.

Peru's Economic Development

Peru is the fifth-largest economy in Latin America. Since the early 2000s, remarkable development transformation has been observed in the country, with a GDP estimated to be well over $280 billion as of 2024 (World Bank, 2025). With a population of 34 million, Peru ranks 21st within the region in terms of GDP per capita, slightly above the regional average (Sanchez, 2024). Its economic strength lies in the exportation of primary resources, including gold, copper, and natural gas, positioning itself well within the competing markets while ensuring service provision for a greater percentage of its population and steady economic growth. The World Bank ranks Peru as an upper-middle-income country. For instance, between 2002 and 2013, it had a poverty reduction of about 36%, while its per capita GDP was over $8400 by 2024, whereas in 2003, it was about $2100 (World Bank, 2025). On the positive side, the country has also seen a protracted slowdown of its economy, dropping to 6.2% by 2014 and to 2.4% by 2024 (World Bank, 2025). Nonetheless, Peru has high informality, which weakens development, institutions, and an unstable political landscape, among other regional disparities, making it similar to the ‘third-world’ countries.

Social Development

The measures, compiled by the UNDP, quantify a country's achievement in health, knowledge, and basic standard of living. With a population of 34 million people, Peru has a human development index of 0.794, regarded as high. In recent decades, Peru's health system has made significant progress. For instance, Peru has continued to increase health insurance coverage through reforms since 2009, and such progress has also pushed the country close to achieving universal health coverage. A result of this is a great improvement in the general population, the poor, and the underserved rural communities. However, this health system continues to struggle in serving diverse populations because of limited integration and coordination, leading to inequitable access to high-value care. In education, only 2% of the population holds a master's degree, below the OECD average of 16%, an indicator of limited progression in higher learning (Education GPS, 2025). Public investment per learner outside of tertiary is about $1984, which is low and ranks Peru near the bottom of the OECD (Education GPS, 2025). Also, gender and social inclusion remain one of the major challenges in Peru, but there has been a 20% increase in women's ownership despite still recording a 2% gender gap as of 2022 (Alliance for Financial Inclusion, 2023). Hence, the government is taking steps to improve the social aspects of the population, but it needs to overcome many obstacles, like inaccessible higher education and gender-based inequality.

Governance and Political Stability

Peru is a country whose democratic political institutions have carried out multiple peaceful transfers of power, but whose public confidence is undermined by high-profile corruption scandals. Based on differing reports, its social system started weakening in the year 2022 due to the violent protests. In addition, religious groups suffer most from discrimination and inequitable political treatment, which also includes their unfair representation. Therefore, due to its political instability, which is a characteristic of ‘third world’ countries, Peru can be considered a developing country.

Environmental and Structural Challenges

The country is blessed with extensive natural resources, including copper, natural gas, and gold, which have long contributed to its economic standing. However, economic overdependence on them has resulted in environmental degradation, deforestation, and pollution. Equally, Peru is feeling the devastating impacts of global warming, for instance, the loss of biodiversity in the Amazon. This has therefore forced the country to invest in strategies that can lead to a sustainable environment through sustainable practices. Besides, development disparities are propelled by inequalities in rural-urban development, which, together with other mentioned factors, add to Peru’s status as a ‘third world’ country.

Conclusion

Overall, Peru is the fifth-largest economy in South America, following Brazil, Argentina, Colombia, and Chile, which puts the country ahead of Ecuador and a full six times ahead of Bolivia, but seven times behind Brazil, the largest economy in that region. Consequently, Peru occupies a middle-income position rather than being referred to as a ‘third world’ country, as some might describe countries that are poor. Despite the persistent challenges of inequities, a weakened legislature, political turmoil, and high cases of corruption, the country can still do well if it implements the right strategies to become a high-income country in the next two decades.