Something else inspired by the old Soc.history.what-if group (Google "at the Fascist Congress" 1964): a world in which Fascism of the Italian type did much, much better than OTL.
Due to some different events before and during WWI, Mussolini ends up with some different ideas on varied subjects such as race, religion and Futurism than his OTL version: he still ends up creating the Fascist party and making himself dictator, but find Hitler and his ideas rather less appealing than OTL, and by the mid 30's an ideological yelling (and in Musso's case, posing) match is going on between Italy and Germany. With Italy coming in on the allied side at a convenient point in WWII, and Mussolini himself dying at an even more convenient point, a clear seperation between Nazis and "proper" fascism becomes widely accepted.
After WWII, Italy creates its own little block with Spain and Portugal, and tries to expand its influence in South America and elsewhere, builds its own atom bomb, etc: after the French colonial wars go pear-shaped in the 50s and 60s, and the French military finds it has a model available, the Fascist Block suddenly starts looking rather muscular.
NATO splits, the Soviets rejoice, but are no more able than OTL to overcome their economic issues. Italy and France, having Muslim Problems, find some common ground with Israel (Musso has never had a problem with Jews as long as they were proper Fascists): the US, with an eye on the oil supply, distances itself from the Israelis.
The US effort to create a Grand Alliance of northern Europe, the Arabs, and the Chinese against the Red and the Black
does yield some benefits, such as cheaper gas and a victory of sorts in Vietnam, but also almost leads to WWIII as efforts in brinkmanship and destablization in the Soviet block go haywire. The rump European Community, restructuring itself as the North European Federation, distances itself from the US.
The Soviet Union comes an economic cropper in the 1990s, and partially disintegrates. The Red-Brown alliance that failed to materialize OTL here comes into existence as a peculiarly Russian version of fascism, leftier than the Italian/French model and enthusiastically Greek Orthodox.
In 2010, a cold war of sorts continues, only now with at least four sides.
China remains the Last Bastion of Communism, and looks a bit like North Korea in the Large Economy Size, but thanks to a much larger geographic reach and self-sufficiency in fertilizers, machinery, etc. there is no mass famine: slow moves towards a "mixed" economy have been taking place since the late 90s.
The US is even more of a paranoid "security state" than OTL's post-2001 society, and is rather more anti-semitic and anti-catholic than OTL to boot: on the plus side, there's better healcare (with fascist, communist and Euro-left-democracies all having universal healthcare, the "state healthcare leads to the gulag" argument was less successful, although there are those who still claim it's inherently authoritarian)
The North European Federation is rich, liberal, and pursues a policy of armed neutrality and keeping out people with funny skin colors, now that there is a regular supply of poor white workers from post-Soviet east Europe.
The Fascist world, centered on the Catholic and mostly Latin-speaking Fascist Bloc, is a mixed bag of nations united by anti-communism, sexism, militarism and dislike of Americans and northern Europeans, but vary from outright dictatorship to simply right-wing authoritarian democracy (such as Israel). Although conservative by nature, there are some progressive elements to the way Fascist Bloc societies have developed: Mussolini was a bigger fan of Futurism in this world, and science and scientific advancement is a Big Thing throughout the Bloc. There's a lot more near-earth space development, and the use of nuclear power is more developed: a Europe with bad relations with the Arab world runs on atomic power. It is rather more heavily armed than the same areas OTL: Spain, South Africa, Brazil, Argentina, South Korea and Turkey all have nuclear weapons in this TL, and France has rather a lot more than the France of OTL (Italy is comparable).
The Fascist world has its own strains and stresses, and there are often squabbles between the French and the Italians for leadership: with China drawing back on the hardline rhetoric, a self-neutralized north Europe, an agressive but badly weakened Russia/USSR and a US willing to cede the initiative outside such "vital interest areas" as the Persian gulf, will the lack of external pressure cause the Bloc to fall apart? Much is expected to be discussed at the International Fascist Congress, which will meet in Buenos Aires in 2011...
Bruce