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These cultures DO NOT increase their standard of living EVER.

First of all they do, only not as much as we have. I don't understand much of your post, but you're making the same assumption the communists do--that the prosperity of one man automatically endangers the prosperity of another. This assumption is wrong. Wealth is not zero-sum.

If you want to see why other countries fail to develop, the real reason is that they have your economic outlook. Look at the recent riots in Bolivia over the attempt to export natural gas. Their economy needs that money and those jobs badly, yet they have this backward mentality and think someone is just out to trick them into giving up their natural resources. It's a lot like the mentality of many posters here.

Another problem in many poor countries is hoarding. People don't invest anything, they hide it in a mattress, because they don't trust any of the institutions. As a result, their capital is so badly misallocated as to be beyond hope.

The other problem is that there is often no rule of law. That's the case in Mexico, where you can't build anything without paying huge bribes to the local officials. They have driven away thousands and thousands of jobs through sheer corruption. There is really no free trade in Mexico, and they suffer because of it. Even so, Mexico's economy is light years ahead of where it once was.

But in the Middle East, the problem is that their economy is totally static. As soon as oil loses its value, as soon as the next big energy breakthrough comes along, those countries are toast, because they have done nothing to diversify. It's like the old Midwestern rust belt where I'm from. They didn't think ahead but instead became dependent on the current day's industry, without planning for the future. Except that for the Arabs, it's even worse. All they have there is their oil, and they aren't prepared to do anything else.

I don't understand much of your post
You should spend more time thinking - as I sugested. I simply stated the facts. You are the one assuming that these societies are going to make the quick giant leap to prosperity - commie style thinking. Fits nicely with the rest of your excuses. The facts are - their population increases much faster than ours, eats up whatever gains they make from trade, strains the resources, the corrupt few rule them as ever and nothing changes except the ammount of aid they request every year.

Look at the recent riots in Bolivia over the attempt to export natural gas.
Of course, they are being endlessly told that the US consumes much more than them, they are being shorted on the deal, etc. It's the same that the Indian and Chinese are going to say very soon - after they feel that the US depends on them. The truth is, the decision to castrate nuclear energy and research was a political one. By design, we are too dependent on Mid East oil (and Bolivia gas). Ditto for job exports.

But in the Middle East, the problem is that their economy is totally static. As soon as oil loses its value, as soon as the next big energy breakthrough comes along, those countries are toast, because they have done nothing to diversify

You are painting with a very broad brush there. Countries like Israel, Bahrain, the UAE and Oman have lesser deposits of oil and they have diversified. I won't talk about Israel as well, their economy is not booming only because of the troubles, but think of the UAe, they have diversified quite a bit and Bahrain has practically no oil but is a banking and trading hub -- it's been one since the Sumerian days when it was called Dilmun. Saudi A Will fall and Kuwait too when the oil goes but don't expect that to happen to Egypt or Iran or the countries I've mentioned above -- these were civilised developed nations when our ancestors in Europe were wearing animal skins.