One problem is that we may become too identified with one ethnic faction or another, and thus alienate a large part of the population. This was a problem of the French empire, which gave preference to Catholics or other Christians over Buddhists, Muslims, animists and others.
More here
How in the heck do we avoid identifying with one ethnic group? It is my understanding that Sadaam brought in Sunnis into Baghdad to lesson the Shi'te majority. He coralled Shi'tes into squalid quarters in crowed areas of Baghdah and gave property to Sunnis. How do we resolve this one issue? There must be thousands like this all over Iraq.