Arabia

It was around the 8th century that the middle east was a massive hub of trade and culture, with great cities of enormous wealth and architecture, a developed system of mathematics and astronomy, and military defenses that were formidable to the europeans in the middle ages. 

Why did it all go to shit?  Sure the Crusades kicked their ass, but why has  the region around Iraq and Afhganistan devolved to third world status?  Why can't they regain their advanced culture of trade, education, and science?   What would happen if they were brought back to being a culture of math and astronomy with thriving universities?    

Timeline:
1941: The last Shah of Iran establishes oil trade with the US and Britain after WWII.  The SAVAK secret police work to eradicate all opposition to the Shah.  US Presidents continue to support him.
1951: the CIA instigates a coup against Mossadegh, the prime minister of Iran, for embargoing oil from the US and UK. 
1963: Ruhollah Khomeini, a fundamentalist, denounces the Shah for being backed by the US and Israel, and gathers support for a rebellion.
1963: The CIA start a military coup in Iraq that puts the Baath party in power, allowing Saddam Hussein to rise in power.  Iraq is supported by the US as a buffer to the Soviet Union.
1978: The Iranian Revolution starts as the majority of Iranians are pissed off at the Shah's oppressive reign and corruption and allows Khomeini to become Ayatollah of Iran.  Every Friday since, massive groups of Iranians chant "Death to Amerikkka!"
1979-1989: The Soviets invade Afghanistan.  Jimmy Carter authorizes the CIA to use covert propaganda and provide arms and training to the Afghan Mujahideen in order to fight the Soviets.  Osama Bin Laden, a wealthy Saudi, funnels arms and troops into Afghanistan with his MAK organization.  
1980-88: The Iran-Iraq war.  After continued border disputes, Saddam attacks Iran for its ports and land, and does not want his own Shi'a citizens to revolt against him or ally with Iran.  The CIA helps Saddam destroy targets with satellite photos, but the Iranians drive back Saddam's forces.
1986: Americans in Lebanon are taken hostage by Iran.  After a failed rescue operation, President Carter's term is over, and President Reagan sells arms to Iran in exchange for hostages without the approval of Congress.
1996: The Taliban gain power over the rival Mujahideen in Afghanistan.
1997: The Taliban negotiate with the US to build an oil pipeline from Turkmenistan across Afghanistan to Pakistan. 
1998: Bombings of US embassies attributed to bin Laden.  Osama bin Laden signs a Fatwa against the United States.
2005: President of Iran wants Israel wiped off the face of the map.  The US identifies several potential hidden nuclear weapons sites.
2010: Iran sends a nuclear missile into New York City and Washington D.C.  US bases in Iraq and Afghanistan send troops to Iran, but are overhwhelmed by sheer numbers.  The US asks for help from neighboring countries, but is laughed at by the French.
2011: The Top Secret "Mount Weather" underground complex is used for the first time, temporarily relocating the US capitol to Bluemont, Virginia.  The Norad base in Colorado plans a nuclear strike on Iran, but finds it has an inoperable, outdated arsenal.
2012: The Mayan calendar ends, starting the Fifth Era of mankind.  The Earth's magnetic poles reverse, causing an era of peace until Peter the Roman becomes Pope.
2015:  The 17th Angel, Kaoru, descends upon the Earth and starts  his homoerotic advances on a young boy.
2018:  The twelve headed beast rises from the sea and marks all of humanity, denouncing Christianity and causing all nations to live happily while 1/4 of the Earth's population is destroyed from famine, pestilence, war, death, and beasts of the Earth.
2035:  An eighty foot tall Jesus made of pure brass walks the Earth and kills The Beast, creates a new Heaven and a new Earth.    People bask in the light of Jesus for 1,000 years, then die.
3035: The Earth no longer feels the burden of mankind. 
10,333: The Sun becomes extinguished, ceasing life on Earth.
0: Shiva destroys the universe and creates it once more.
13 Trillion trillion trillion trillion: Xenu becomes intergalactic emperor and battles Nyarlathotep for dominance of the cosmos.