But I believe the First-Second-Third World distinctions were originally politically based on whether a country was aligned with Western Capitalism-Soviet Union- or non-aligned, respectively. Definitely racist elements involved in condemning/couping USSR and the non-aligned countries though.
I think people generally now mean to say Global South when they say that, which is more racially charged but also ultimately political-economic.
Of course, a huge part of the global South is actually just the Northern hemisphere but to the east from Europe. And Australia isn't part of the Global South.