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Iceland’s first full-day women’s strike in 48 years aims to close pay gap
(www.theguardian.com)
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In regular parlance it very quickly came to mean countries that are very underdeveloped, with high levels of poverty, simply because this tended to map quite closely to non-alignment.
Unless you're reading something about cold war geopolitics, most use of the term takes this casual meaning, though you can usually get confirmation of what is meant from context.
I don't see it used as much as in the past.