Italy lost World War II.
Italy . The subsequent participation in World War II on the Axis side ended in military defeat , economic destruction and an Italian civil war . Following the liberation of Italy and the rise of the resistance , the country abolished the monarchy , reinstated democracy , enjoyed a prolonged economic boom and , despite periods of sociopolitical turmoil ( e.g. Anni di piombo , Mani pulite , the Second Mafia War , the Maxi Trial and subsequent assassinations of anti-mafia officials ) , became a major developed country .