The `Theory of Demographic Transition' embraces the observation that all countries in the world go through different stages in the growth of population. A nation's economy and level of development is directly related to that nation's birth and death rates. Population history can be divided into three main stages, which apply to third world, second world and first world nations. These stages or classifications demonstrate a transition from high birth and death rates to low birth and death rates. The `Theory of Demographic Transition' suggests that all nations begin in stage one as underdeveloped, third world nations and through time transition into first world nations. The theory discusses observations made concerning social problems and their relation to each stage of transition; then attributes them to population. Through this model we can understand the relationship, characteristics, and transition between underdeveloped and developed nations as it relates to population.

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