Economic Prospects for a One-State Solution in Palestine-Israel

This paper explores the economic underpinnings of a one-state solution in Israel/Palestine, a dimension that has rarely been addressed in the growing literature on this subject. It seeks to demonstrate that economic developments since 1993 prove the demise of the two-state solution but without shifting the power imbalances in favor of a one-state alternative. This is largely because Israel has been able to dispense with the Palestinians, both economically and politically. The international community has inadvertently contributed to this situation but also holds the key to its reversal.