You asked

what was jesus's understanding of 'the world' in this context?

The passage, plainly, with room to sit with it.

John 17:14-16

“I have given them your word. The world hated them, because they are not of the world, even as I am not of the world. I pray not that you would take them from the world, but that you would keep them from the evil one. They are not of the world, even as I am not of the world.”

This passage is part of Jesus's 'High Priestly Prayer' in the Gospel of John, offered shortly before his arrest and crucifixion. He is speaking to his Father about his disciples, reflecting on their mission after he is gone.

What does it mean to live in the world, but not be 'of' it, in your daily life?

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Read alongside it

John 15:18-19
Jesus tells his disciples the world will hate them because it hated him first, distinguishing between 'the world' and his followers.
Romans 12:2
Paul instructs believers not to conform to the pattern of this world but to be transformed by the renewing of their minds.
1 John 2:15-17
The author warns against loving the world or the things in the world, defining 'the world' in terms of desires and pride.

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