From what I understand the term third world is out of favor, although I still use it myself sometimes. Many countries over time have improved their economic situations compared to 50 years ago. Some developing countries have made incredible strides, and others have moved slowly. First world countries helping the third world, does help the third world countries to become economically stronger and more independent. The terms first, second, and third world developed as a way to split the world regarding industrialization, and also a lack of a reasonable sized middle class, and also took into considerations capitalism v. communism. There is overlap in the three categories. Most of Latin America is considered to be third world, but if you go to many of their cities they have all the modernatization of western cities, it isn’t like everyone lives in a hit, which I think is the picture a lot of people have in their minds.
Generally, I think the third world fails to educate their entire population and they do not protect the wages of the underclass. This is why so many Americans are nervous about all the sentiment towards not supporting public education and not raising the minimum wage. Just look at the countries around the world, think about which ones you want your country to be similar to, and then you can decide what are the best practices. Consider things like crime, cleanliness, traffic, roadways, electricity, clean water, safety, freedom, and then take a serious look at the political and economic situation in those countries and what is provided to the citizens.