Antonio Gramsci used the term ‘passive revolution’ to describe the limitations and weaknesses of the 19^th century bourgeois state in Italy which permitted economic development whilst thwarting social and political progress. This detailed study consists of seven essays each exploring a different theme of the economic and social basis of the Liberal state, providing a broad understanding of the background against the emergence of Italian fascism and present a number of debates and controversies amongst Italian historians. By critical discussion of Gramsci’s reading of modern Italian history, the essays present an analysis of the structure and development of social and economic relations in the formation of the Liberal state, illustrating the transition from liberalism to fascism.