The very definition of second and third world were created and based off of the cold war. 1st world = USA/Western Europe + allies 2nd world = USSR/China + alli

The very definition of second and third world were created and based off of the cold war. 1st world = USA/Western Europe + allies 2nd world = USSR/China + allies 3rd world = Everyone else. By definition Russia started as a 2nd world country. Now your point about Russia not being on the level of western Europe pre-1917, is a very good point. They were year behind in industrialising (for a variety of reasons, including not being capitalist and competitive). However other countries have tried, such as Eastern Germany. Eastern Germany and Western Germany, whilst not identical (with Western being a bit richer) were not "third world hell holes" except straight after WW2. They then diverged as the capitalist west grew and improved, and the east stagnated under a terrible regime. Other examples could include North and South Korea, Mao-China, and Deng xiaoping- China. Socialism does not work. It does not work in the real world.