OK, No Cold War.
Stalin realizes in 1945 that occupation of Eastern Europe and a military build-up against the west would ruin his country. He fears others realize this and if he attempts to go ahead with it, they will over throw him. In an unprecedented move he gives up eastern Europe (except East Germany) and North Korea.
The deal he makes with the west is the countries of East Europe can have any government they want but they have to be neutral with a small military and give the USSR access across their borders to get to East Germany. In a sense they are alot like Finland. Technically not ruled by the USSR, but still dominated by them. With help from the west they all become Capitalist (except Yugoslavia) and democratic, some are Republics others are Monarchies. Korea is united as one country and becomes a neutral nation, it is run by an American friendly but neutral government and develops into a Democracy and one of the Asian Tigers.
After Stalin's death, the USSR and West make a deal to re-unite Germany, making it kind of a lager Austria. The foreign occupation will be limited to two Army Divisions for each of the western allies and five for the USSR. Germany is also allowed a small defense force.
Without the Cold War both the US and USSR retreat into isolation, the two giants that battled for control of the world again slumber. Britain and France still begin decolonization which finally ends in the 1980s after riots in the late 1960s and 1970s. Civil Technology gets a big boost, computers are developed sooner for the Civilian Market, and the internet comes onto the scene in 1976.
Israel still comes into existence but it is on the Peel Commission Partition Plan of 1937, and the borders are strictly locked by the UN. Jerusalem has become a Republic and was the headquarters for the UN until a car bomb destroyed part of the building in 1973. Both Israeli and Palestinian nationals have been responsible for terrorists activities in Jerusalem. Though it is a democracy, the Republic of Jeruslaem has a very active military police force. Israel's capital is in Tel Aviv and Palestines capital is in Hebron, the UN has its new Headquarters located in Constantinople.
After the French lose in Indochina in 1954, Communism spreads through SE Asia and the Philippines. The EU is formed earlier and attempts to halt the spread of Communism in the third world, the US and EU work together, this is attempted through economics rather than military. The nations of Latin America and Africa that accept the EU/US aid begin to develop into second world countries, some are on the verge of becoming first world countries.
Space becomes the frontier for a three way race between the EU, US, and USSR. The US is the first to launch a rocket into space, while the EU is the first to put a satellite into orbit. The US beats the USSR to put a man into space. The US/EU space programs begin the process of cooperation and put a man on the moon in 1963.
WIthout worrying about the Cold War, the USSR invests some of its money more wisely, but after a brief military build up against the Chinese in the late 1960s early 1970s shows just how poor the economy is. The USSR begins economic reformations (like OTL China) in the early 1980s, and begins to develop a strong economy. The country begins to democraticize in the late 1990s and is still under going the project.
After the military build up with the Soviets, the Chinese began to move closer to the west. It still does its economic reform in the late 1970s, though it is still successful it is much less so. The EU and US both began putting pressure on China on its human rights records in the early 1980s, which China was slow to progress until the Tinanmen Square protests in 1993. China's country began adopting western ideals in return for free trade with the west. China's economy has began slowly improving.
As 2004 dawns, the Soviet Union has the worlds second largest economy and a strong military. The government is in firm control and the Soviet people are content, although the standard of living in the USSR is about 30 years behind that of the west. Technology is better, and the space race has turned into a friendly cooperation between the USSR, EU and US. The partners have began to look at the possibility of sending a manned mission to Mars, and building an outpost on the moon, the mission to Mars seems very likely, the Moon Base is still a distant plan.