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Presently their seems to be only one European country where clans/tribes have retained their position as influential social institutions, namely Albania.
By contrast in most of the Middle East tribes have retained importance. Libya for example has around 140 tribes and clans which play important societal roles, for example in the recent revolution. The same is true in Iraq, Syrians , Turkey and so on.
So their death clearly isn't an inevitable consequence of "development"... Iraq, Syria et al have been developed for several millenia longer then most of Europe, and still retain them as influential social institutions. It's surely therefore reasonably possible for them to have survived in much of Europe as well... they certainly held an important position in ancient Greece and Rome.
Problematically I can find absolutely no information on what caused their death as institution Europe-wide or when that decay and death occurred.