1960s and 1970s: During the early 1960s, Italy continues to enjoy the postwar era "economic miracle" of unprecedented growth and prosperity. By the mid-1960s, however, the Italian economy suffers a downturn. With the economy in decline, Italy, during the 1970s, is in the throes of political instability. The years 1969-1982 are characterized by acts of domestic terrorism.

1980s and 1990s: By the mid-1980s, economic conditions in the north of Italy have greatly improved, whereas in the south the economy is still weak. Mafia business practices and clandestine dealings with government officials dominate Italian politics and economy. Italian politics during the 1990s is characterized by scandal and turmoil. Widespread government corruption, particularly regarding the use of bribery, is brought to light in 1992. "Operation Clean Hands" results in the arrest and conviction of thousands of politicians, businessmen, and public officials for corruption and bribery, some...