I think state formation is an important element and is a primary factor in a lot of the problems we see today with "failed states." That's one reason I keep bringing up the issue of borders because, in many cases, borders were imposed and are a continuing source of conflict. There wasn't a natural evolution that developed into a social contract and nationhood - instead a bunch of different peoples were conglomerated and given a name. I'm not sure there is much that additional outside interference (ie. "Development") can do to create or improve a social contract in that case. It might make problems worse.

There's also the question of institutions and I think they are some of the stickiest glue that enables a "social contract" that keeps peoples together in a big tent. For example, in Pakistan there is the Army. What is there in Afghanistan? Somalia? Yemen? Nothing except Islam which brings up another set of issues. Can outsiders develop such institutions? It seems to me the track record on that isn't very good.