Is the primary reason for this, and will continue to be for as long as Israel refuses to relegate religion to the spiritual domain where it belongs. Yet already, its influence has become so strong that it can't be done without a tremendous amount of social turmoil, and Israel would play hell if it even tried. So you might as well get accustomed to that 'third world' status.
Roadside bomb kills five border officers in western Iraq (AP)
from the article: Education on the brink of collapse