Quiz question: what country is simultaneously the most peaceful, wealthiest in the world and also split among three different tribes of wildly varying demographic weight? If you guessed Iraq, you got two out of three wrong. The answer is: Switzerland.
Switzerland achieves this long-lasting political stability by being divided into 26 confederated autonomous cantons with nearly homogeneous demographics. As a consequence of the small size of each canton (the biggest has 1.2 million souls, the smallest only 15,000) the country is committed to free market economics, and regardless no other economic order could be maintained peacefully in an ethnically heterogeneous country. The country as a whole does not have an official religion, but the cantons fund their respective churches through taxation. source: wikipedia
The civil war in Iraq will continue as long as the Sunni minority believes that Shia demographics will be enough to crush them at the polls. When a whole population is your enemy it makes your war strategy rather clear: kill the population. That was the strategy in Algeria and Rwanda a decade ago. Nobody won. In Iraq, suicide bombers make the strategy even easier. If the Anglo-American occupation wants peace restored in Iraq it will have to resort to segregation. Cantonize Iraq along ethnic lines. Make the cantons at least 90% homogeneous. The rest of the population will be dislocated but there will be many safe places to head to. Disband the national army and replace it with cantonal defense forces. That leaves only one remaining issue that anyone cares about: the country's oil wealth. Since there is no legitimate claim to property emerging from the Hussein regime the ministry of oil should be incorporated, separated from any political meddling, and one fully exchangeable share should be issued to every living Iraqi. Cantons will not own the oil already the property of the Iraqi Oil Company under homesteading principles.
Once this is done, the same process should be applied to the rest of the world, especially the United States and Israel-Palestine, so that no such waste of lives ever occurs again.
Since this is cyburbia and we love that stuff here's a bonus picture, thanks wikipedia.