The big problem in the Middle East in the end boils down to one thing: minorities are not protected the states that arise there.
In the past, state taxation, bureaucracy, and inflation in Ottoman Empire and Egypt had stunted development (see David Landes, Bankers and Pashas; see also the article, Lewis, Bernard. [1960] 1970. The Arabs in Eclipse. The Economic Decline of Empires. Edited by Cipolla, Carlo. London: Menthuen & Company).
Today, certain historians have identified the problem as the honor/shame system. To accept foreign ideas is shameful; to tolerate successful businessmen or technologists–if they have different social/economic opinions–is shameful; to accept aid is shameful; etc.
Example: Why there is still a conflict in Palestine? (1) The economic purpose of the original attack, when Israel was just founded, was that land that settlers bought cheaply since the nineteenth century and began irrigating had gained substantial productivity and value because of these efforts; many people wanted it back now that it was more valuable. (2) The Egyptian, British-trained Iraq, Jordanian, Syrian, and local armies and militias lost the original attack against Jews who had inferior weaponry and a massive numerical disadvantage. (3) The purpose after that failure of the attack despite such military superiority was shame that many of the next generations feel. (4) It is this shame that prompts action to ‘remove the shame’…
Capitalism cannot function in an honor/shame environment, because many people around the capitalists feel life as zero-sum game. Marginal success is respected, but large success is hated. Marxist ideology is so popular the Middle East, for this reason.
The problem in the Middle East is three pronged:
(i) pro-capitalistic minorities in the Middle East will not survive in the states that existed since the 1600’s in the Middle East.
(ii) State-building from outside will not resolve the problem, especially when every success at protecting minorities prompts further hate from the dominant majorities. Of course, finally, fact the State-builders, the politicians in the United States, have no understanding of building a free market state: they focus on arbitrary political goals instead of measures that provide security for a liberal-professional class to safely develop in the Middle East. This means the conflict never stops. State-builders are waging a war against liberal capitalism in their own countries, how can they build it anywhere else?
(iii) Withdrawal means attack from a centralized anti-western position. Staying in means no success at State-building and limitless economic loss, because only internal change can cause successful removal of the honor/shame system.
In other words: a total mess, with no solutions in the current political climate.