The Gaza War Marked the End of the Two-State Solution: Here’s What’s Next

Mathias Mossberg, Tablet August 6, 2014

The conflict between Palestinians and Israelis has now raged for the better
part of a century. Israel was established as a state in 1948, but the
origins of the conflict go back much further, at least to the first days of
the Zionist movement. Some say the conflict was born more than 3,000 years
ago, when Moses espied the green strip of Jericho from Mount Nebo, on the
other side of the Jordan River; or earlier still, when Abraham first passed
through the land of Canaan and rested in Shechem, close to today’s Nablus.

>From the biblical period through the present day the land between the
Mediterranean Sea and the Jordan River has been the site of innumerable
conflicts over territory and the identities that have taken shape within
it. As we go to press, prospects for peace between Israelis and
Palestinians remain bleak, primarily because a territorial division
acceptable to both sides is not in sight. Israel continues to strengthen
its presence across the West Bank while remaining in control over many
aspects of life in Gaza. Among increasing numbers of both Palestinians and
Israelis the view is gaining ground that time has run out for a traditional
two-state solution—that is, a division of historic Palestine/Eretz Yisrael
into two territorially distinct states.

If a two-state solution seems increasingly remote, a one-state solution
remains unacceptable to the vast majority of Israelis for political and
cultural as well as demographic reasons. A significant percentage of
Palestinians is similarly not ready to give up the long-sought-after dream
of a sovereign Palestinian state. Facts on the ground have led to loss of
hope, and the belief is widespread that the two-state solution is dead.

Could a concept with two parallel state structures, both covering the whole
territory, with one answering to Palestinians and one to Israelis
regardless of where they live, be envisaged? Could such a concept
contribute to unlocking positions on key issues and thus opening up a way
forward?

In a Parallel States structure, one Israeli state and one Palestinian would
both cover the whole area between the Mediterranean and the Jordan River.
In such a scenario, military, political, and economic barriers would be
lifted, and a joint security and defense policy, a common and equitable
economic policy, and joint and harmonized legislation would replace
existing divisions. Such a structure would allow both for an independent
Palestinian state and for Israel to be both Jewish and democratic at the
same time. It would bring an end to occupation and would permit free
movement over the whole area for both peoples, as well as providing a
vision for an end of conflict.

This vision of two states on the same land is, of course, only a vision. It
may be that it is far too remote from present realities ever to be
implemented or seriously contemplated as such. But considering the present
lack of movement and of ways out of the present deadlock and even of ideas,
more imaginative scenarios may have to be reflected upon. It cannot be
excluded that such a discussion might reveal elements of solutions not
previously considered and thus indicate other ways forward.

The international situation is constantly changing, not least in the Middle
East, where the Arab uprisings have created a completely new situation
across the region. Old truths are being questioned and new thoughts
introduced, while long-stable balances of power, alignments of forces, and
strategic principles and concepts have been challenged and even upended.

Today neither sovereignty nor the role of the nation-state is what it was
even a generation ago. Despite the ongoing political and ideological
salience of the nation-state, in practice national sovereignty is now
divided and circumscribed in unprecedented ways, while control of territory
has lost its power to determine the shape, path, and speed of development
or the broader well-being of peoples.

Developments in international law; the growth and proliferation of
international institutions; and economic, technological, and political
globalization have all contributed to creating more porous borders between
states, as well as limiting a state’s capacity to exercise indiscriminate
power. The concept of power itself is gradually gaining both new content
and new dimensions. The scope of military power is increasingly challenged
and complemented by economic, technological, and political power, as well
as the power of information. Economic and political power no longer flow
mainly from control of land.

But the conflict between Israelis and Palestinians is like few others,
stubbornly focused on control of land. Developments on the ground have in
many ways gone too far to permit a workable territorial division of
Palestinians and Israelis into distinct political entities. Physical and
political obstacles continue to grow. Politically, the Israeli electorate
is increasingly skeptical, not to say hostile, to a deal with the
Palestinians built upon the principle of dividing the land. The thirst of
the Israeli right to settle more and more land remains unquenched.
Physically, the web of Israeli roads and settlements on the West Bank is
forming a geological sediment on top of the existing Palestinian society,
and politically the Israeli “matrix of control” is slowly making
substantial and sustainable development impossible for the Palestinians. In
Gaza, economic and social conditions remain miserable, while the recently
celebrated economic growth in the West Bank has been limited to a few
cities and is not built on a stable political framework or an autonomous
economic foundation. The Palestinian Authority’s attempt to build a state
under occupation has all but failed. Palestinians and other non-Jewish
citizens of Israel, despite their citizenship, continue to suffer
discrimination in various ways.

Israel continues to control almost all the territory of what was once the
Mandate for Palestine and has so far not been willing to part with what
Palestinians regard as the minimum necessary to enable the creation of a
territorially viable Palestinian state. Demographic developments are making
Palestinians a majority in the whole area of pre-1948 Palestine. A
situation with a minority controlling more than 80 percent of the territory
and suppressing the majority of the population is not sustainable.

The so-called peace process has brought neither peace nor process. That is,
not only has it failed to provide peace, but its continued existence is
also owed to the necessity of maintaining the “process” at the expense of a
peace whose contours and implications none of the interested parties would
likely accept. The failed Palestinian attempt in 2011 to gain recognition
at the United Nations has been characterized as the final burial. The new
U.N. vote in 2012 to grant Palestine nonmember state status was an
important Palestinian psychological and political victory, but it changes
little in reality.

The present paradigm of dividing the land geographically has not worked, in
spite of 30 years of continual efforts, numerous plans, and endless
talks—or talks about talks—involving the two parties, the United States,
the European Union, and large parts of the international community. And
there are solid reasons why it is not working: Physically there is not much
left to divide, and politically the necessary political will has not been
mobilized.

Put simply, a two-state solution seems no longer in the cards. A one-state
solution most likely never was. If the land cannot be shared by
geographical division, and if a one-state solution remains unacceptable,
can the land be shared in some other way? Is it possible to imagine another
way that can provide an opening out of the present deadlock?

***

It is into this situation that we introduce the concept of parallel states.
Can one design a scenario with a new type of two-state solution: one
Israeli state structure and one Palestinian state structure, in parallel,
each covering the whole area, and with equal but separate political and
civil rights for all? Such a scenario would mean decoupling the exclusive
link between state and territory, and replacing it with a link between the
state and the individual, regardless of where he or she lives. Two state
structures, parallel to or “superimposed” upon each other, would thus cover
the whole area of Mandatory Palestine.

The question of who should belong to which state could be addressed either
by nationality or by choice or by some combination of both. Thus people in
the whole area could be able to choose freely to which state they would
belong, and at the same time have the right—at least in principle—to settle
where they liked within the whole territory. Citizenship could then be the
result of an individual’s free choice or nationality, and would follow the
citizen throughout the territory.

Such an arrangement would likely lead, on the one hand, to a mainly
Jewish-Israeli area consisting of the bulk of present-day Israel and a
number of the larger Jewish settlements in the West Bank. But this area
should also be open for Palestinians wishing to live there, initially
perhaps in limited numbers, until the structure won general acceptance and
confidence from both sides. Israelis living in this area would be under
Israeli jurisdiction, but individuals living there could also be free to
choose to belong to the Palestinian state, and thus to be under Palestinian
jurisdiction.

In the same way, one could imagine a Palestinian area consisting of the
West Bank and Gaza, and maybe parts of the areas in Israel where
Palestinians now predominate. Such an area would, however, in the same way
be open for Jews-Israelis—and others—who wished to live there, perhaps with
corresponding numerical limitations initially. These Jews-Israelis would be
under Israeli jurisdiction and belong to the Israeli state, despite living
in Palestinian-predominant areas. Dual citizenship could be an option in
some cases, while differing levels of political rights could be elaborated,
allowing Palestinians or Jews to participate in local or regional
governance while maintaining national ties to their own state.

The application of such a structure to present geographic and demographic
realities might have to be complemented with the notion of separate
“heartlands”: areas where present separation patterns remain and continue
to be legally protected. These should be more limited areas around the
major economic and security concentrations, such as Tel Aviv and Ramallah.

Thus, two parallel state structures could cover the whole area, with
separate heartlands but with soft and porous borders between them. Israelis
and Palestinians could each claim their own state with its own special
character and identity, but they would complement each other and not be
mutually exclusive.

In such a structure, both states would keep their own national symbols and
their own government and parliament, as well as maintaining distinct
foreign policy and foreign representation. They could choose to join in a
defense union, an economic union, or a customs union, or any combination of
these, with one currency, one labor market, and joint external border
management. Elements of this can, to some extent and in practical terms, be
said to be in place today, even if one-sidedly and with strong forces
pulling in different directions.

Of course, there would have to be joint, integrated, or in any case
harmonized legislation in a number of areas, including areas like
communications, road traffic, police, and taxation. In other areas, such as
civil law and family matters, jurisdiction in many parts of the world has
already followed religion rather than territory for hundreds of years, and
such areas would thus not necessarily present a major problem, although
admittedly parallel legal systems by definition involve complications.

The Parallel States framework would be an innovation in international
politics, in international law, and in basic constitutional matters. The
scenario would differ from both a federal and a binational system but would
have elements of both.

Before outlining in more detail how such a scenario could be imagined, we
need to take a look at some basic elements of the conflict and also at
recent developments in the understanding of sovereignty and what they mean
in the present-day world.

*Back to basics*

The contemporary conflict between Israelis and Palestinians is generally
regarded as territorial at its core, with the key issues said to include
land and borders, Jerusalem, settlements, and refugees. Yet defining the
conflict in these terms has not yielded meaningful progress toward a
peaceful resolution. A longer and deeper perspective is inevitable. The
search for an end to the conflict must go back to its beginning.

Basic fears, concerns, and aspirations of the two sides have to be
addressed. Exploring these is likely to highlight different perspectives
and concerns from Israelis and Palestinians but also to reveal some
fundamental elements common to both.

For Israelis, security is a sine qua non, and an existential issue. The
quest for security was the basis for the establishment of the state of
Israel, and the Jewish state satisfies the fundamental Jewish-Israeli need
for Jews to be in charge of their own destiny, to have a place on earth
secure from persecution, and to protect their own identity. Closely linked
to the Jewish identity is the Jewish people’s specific attachment to the
Holy Land.

For Palestinians, the defining issue is not security as such but the loss
of land—in itself a key security issue—linked to existential fears of an
ultimate loss of identity. Palestinians feel a physical threat wherever
they are, be it in Israel, the Occupied Territory, in camps, in neighboring
states, or in the diaspora. Palestinians also have a need for dignity,
equality, and justice—focused in particular on the issue of return and on a
full recognition of the right to return.

In contrast to Israelis, many Palestinians early on did not in the same way
consider statehood a primary objective, even if this appeared to be the
case for several decades, particularly for the leadership of the Palestine
Liberation Organization. Palestinian nationalism and the drive for a
nation-state found institutional expression in the PLO in the late 1960s.
As the peace process has waned, the notion of statehood has been receding
for many Palestinians. They wish to get rid of Israeli occupation, but not
necessarily to divide the land. Ending the occupation and implementing
justice remain central, along with an abiding attachment to the land.

For both sides, basic issues are thus security, identity, and access to the
land. Most other issues can be subsumed under these basic categories. To
have a chance to succeed, the quest for peace must begin by imagining ways
to ensure mutually satisfactory solutions to the following issues:

•  Is it possible to end the occupation and fulfill Palestinian needs of
return in ways that can be harmonized with Israeli security needs?

•  Can a Palestinian state be set up, and a Jewish state preserved, while
at the same time both peoples have access to the whole land?

•  Is there a way to think in terms of a new kind of two-state structure
that could meet the most important demands of the two sides?

These are questions that need to be addressed in the search for ways
forward, in place of the tired focus on geographical division of the
territory. Instead of dividing ownership of the land horizontally into two
different sovereignties, ownership could be divided vertically into
different functions, and the hitherto-exclusive link between statehood and
territory loosened. Thus an alternative scenario is imagined, based on the
principle of shared sovereignty and political authority. But let us first
take a quick look at how the concept of sovereignty has come under debate,
in academic circles and elsewhere, in the past few decades.

*Divisible sovereignty*

In the world outside the Middle East, control of territory has ceased to
carry the same meaning it once did, and also in the Middle East changes are
taking place. Economic and political power no longer grow only out of power
over the land. Access to markets, technology, information, and the rule of
law are equal—and often more important—elements creating economic and
political power. Power has new contents, borders are becoming porous, and
states are no longer the only important actors. Many argue that sovereignty
as we used to understand it is largely becoming a thing of the past.

The concept of sovereignty has eroded under the pressure of globalization.
The impact of universal principles and universal structures suggests new
dimensions in how states relate to one another and to their citizens. The
role of borders is changing. People and goods can still largely be kept
out—or in—but borders no longer protect against ideas, modern
communications systems, or modern weapons systems. Recent developments in
various parts of the Middle East serve to underscore this point.

*One Land, Two States*

International law and principles have been perforating national boundaries,
and various transnational structures limit both the legislative and the
executive space of national political bodies. External influence is
increasing at all levels. Political leaders are now not only deemed
responsible to their own people, but are also increasingly held accountable
to international bodies for their deeds. National economic sovereignty is
being undermined, and is in some cases little more than a formality, and
even large countries can find their scope of action limited by
international institutions. A growing body of international legislation and
international administrative law is regulating ever-larger fields of
national life.

The nation-state as we know it is no longer the undisputed final product of
the international system. History did not end, as some have suggested, but
the Westphalian era—characterized by the primacy of the nation-state—may be
coming to an end, and the nation-state may in the future be regarded as a
historical parenthesis stretching from the mid-seventeenth century until
the twenty-first.

The erosion of sovereign political authority has affected both external and
internal aspects of sovereignty. In both cases, sovereign space has been
ceded to other actors than the nation-state as such: international
institutions, transnational companies, major cities and organizations, and
even private citizens and other nonstate actors.

As a consequence, the indivisibility of sovereignty has come to be
increasingly questioned. The “classical” view of Westphalian
sovereignty—that sovereignty lies exclusively in the hands of states, is
inherently indivisible and inherently territorial—is now much disputed.
Scholars from a number of fields claim that this classical, traditional
view of undivided sovereignty is in need of being critically rethought. It
is pointed out that the norm of indivisibility has throughout history
served as a veil, hiding actual power relations. In reality, sovereignty
has always been divisible, and the exercise of political authority has
often been derived from several sources, both external and internal. Thus
it is argued that Westphalian sovereignty has constantly been violated, and
that “it is the myth of Westphalia, rather than Westphalia itself, on which
today’s understanding of the principle of sovereignty rests.” In the
Westphalian era the idea of divisible sovereignty was manifested in several
respects, in particular during the colonial period with, for example, the
Protectorate and Dominions system or the Mandate system of the League of
Nations. The federal system of government found in many states is also heir
to this politico-epistemological tradition. While a federation is
characterized by vertically shared sovereignty, with different levels
exercising different functions, a condominium represents horizontally
shared sovereignty, with two states sharing power over a certain territory,
normally in borderlands between them. This model has applied to land areas
such as Andorra and the Sudan, and to lakes and seas such as Lake Constance
and the Caspian Sea, as well as to rivers such as the Mosel.

With sovereignty eroded and divisible, the exclusive and previously
sacrosanct link between sovereignty and territory has begun to fade. In
other words, sovereignty’s function as political authority may be divided
into, on the one hand, the authority over citizens, and on the other,
authority over the territory. Until now these two have been exclusively
linked. The questions then arise: Is it possible to cut this previously
exclusive, if now in many cases fading, link between sovereignty and
territory? And is it possible to imagine political authority over a
particular territory exercised in common by two actors, while at the same
time those two exercise exclusive authority over their respective citizens?
In such a case, the mutual links of loyalty between state and citizen would
be retained, and thus the legitimacy of the state in relation to its
citizens. The territory itself, on the other hand, would become objectified
and able to be given over to common administration.

The Universal Declaration of Human Rights refers in Article 21 to the will
of the people as the basis for the authority of government. In other words,
state sovereignty should not derive its legitimacy from the control of a
specific territory per se; the will of the people it claims to have under
its control must also be respected and must be the source of the state’s
authority. As expressed in the International Covenants on Human Rights, the
core of the international human rights law, “All peoples have the right to
self-determination. By virtue of that right they freely determine their
political status and freely pursue their economic, social and cultural
development.”

Self-determination is a principle that sets the framework for the people’s
political rights. In exercising their right to self-determination, a people
can “freely determine” their status and thus decide which status and form
of government suit them best. There is consequently no contradiction
between the right of self-determination and the choice of a different form
of sovereignty, such as parallel sovereignty, and of a state structure
other than the classical, traditional, territorially determined state.

The notion of parallel sovereignty is, in the context of other forms of
organization of political power, a novelty in degree rather than in kind.
The difference from a condominium arrangement is that parallel sovereignty
denotes shared power not just over a specific territory between two states,
but over the whole area covered by the two states. This can be regarded as
revolutionary compared to the traditional notion of condominium, wherein
common or joint sovereignty normally is exercised as an additional feature
on the periphery, while exclusive sovereignty still reigns at home. But
parallel sovereignty, or parallel political authority, can also in
principle be regarded as yet another form of shared power, even if its
application implies a specific set of institutional arrangements.

To a certain extent, it can be argued that a Parallel States structure is
reminiscent of the European Union’s architecture, wherein the member states
have voluntarily ceded layers of sovereignty to a common supranational
level of government, while retaining other layers on an exclusively
national level. A Parallel States structure could however be seen as an
inverted EU model, wherein the two states retain separate superstructures
on the top level and create a body of common elements thereunder.

The closest comparison from all the various peace proposals that have been
made in the Israeli-Palestinian context is probably the Clinton parameters,
and more specifically the ideas about Jerusalem. In these parameters,
certain areas would be subject to Palestinian and others to Israeli
sovereignty, divided along ethnic lines, while certain areas would have
shared sovereignty.

What, then, could a Parallel States structure look like in practical terms?

*Parallel states—a provocation against conventional wisdom*

In a Parallel States structure, sovereignty or political authority over the
territory could be shared between the two states in layers, with a number
of state functions being exercised separately and a number of functions
performed in common. State sovereignty could be primarily linked directly
with the individual, and only in a secondary way with territory. Citizens
of both states could be free to move and settle in the whole area, and
internal physical barriers could be lifted.

Obviously it is conceptually demanding to imagine such a structure in
practice, with two states existing in parallel on the same piece of land.
To think in these terms is a provocation against both conventional wisdom
and international law. There is no direct precedence in history, although
parallel power structures and legislations were not uncommon in medieval
Europe, as well as in the Ottoman Empire. The closest historically proven
model is the condominium. Two states covering the whole of the same piece
of land is something else—the states’ structure, though similar in
architecture, would, in important respects, have to be of a different
character from the modern state as we know it.

The basic question is how two parallel sets of political agency could exist
side by side and cooperate on the same territory. Such a structure would
require a clear horizontal division of powers between the two states, as
well as a vertical division between different state functions—with some
functions exercised separately and some held in common—combined with some
form of permanent bilateral negotiation mechanism to resolve issues as they
arise.

The states could retain their national symbols, have separate political
bodies, be responsible to their own separate electorates, and retain a high
degree of independence both in internal and in international matters. But
this independence would obviously have to be curbed by mutual regard for
the other in a reciprocal manner. There could be two heads of state, two
governments, two Parliaments, and two administrations. Foreign policy is an
area where one could imagine two separate policies and each state having
its own international representation; but naturally a certain degree of
coordination would have to take place in matters of common interest. There
would have to be clear limitations on the authority that either state could
exercise over the territory. Many state institutions could retain a
“normal” character, but the scope of their power would have to be modified
and take into account the power of the other, parallel, state structure.

A number of the questions that would have to be addressed are not unique
for a Parallel States structure—they are relevant both in a one-state
solution and—for some of them—in a two-state solution of the more
traditional character. In this volume, focus has been directed particularly
toward security, economic, and legal aspects, all of which present unique
challenges.

*Security a key issue*

Security and defense would be of paramount importance in a Parallel States
structure, as well as in a more conventional two-state structure. This
poses particularly vital questions, in that security is a basic need for
each side in existential and concrete ways. To craft a common
Israeli-Palestinian security strategy, outlining how Israelis and
Palestinians could cooperate and ultimately join forces in a common
security system, covering external borders as well as internal order, is a
challenge that should not be underestimated.

A joint external security envelope, with a high degree of cooperation on
external security and with joint or coordinated external border control,
has to be envisaged. It is worth noting, though, that already today there
are elements of an internal security structure that contains separate
institutions and security forces, but also a high degree of coordination.

*Regional structure and ‘heartlands’*

A Parallel States structure can be designed in different ways, but in
principle the basic building block is the individual and the cement is the
loyalty of the individual to the state. In its pure form, two state
structures would extend in parallel over the whole territory, with only the
individual at the base. But of course in reality, there are a number of
substructures between the state and the individual—regions, counties,
cities, villages—each with its own administration.

A Parallel States structure could thus on the one hand be said to be a
top-bottom creation, where the political architecture is constructed from
the top. On the other hand it could also be seen as a bottom-up structure,
where the building blocks are the local communities and the division at the
top a logical consequence of their different composition.

The basic principle for deciding who should belong to which state is—like
the rest of a Parallel States structure—something that has to be negotiated
between the two parties. The division could be based on nationality or
individual choice or some other mutually agreed-upon mechanism. The option
of dual nationality must also be taken into account, and would most likely
play a substantial role—not least regarding Palestinians who are currently
Israeli citizens.

One possible architecture involves substructures being given the right to
choose which state to belong to, on a regional level. This would most
likely yield a rather broad patchwork of different allegiances. Another
possibility is to have local communities given the choice, which would
provide a more fine-tuned patchwork. In both cases, the result would most
likely follow rather closely existing population concentrations.

The question then arises, Would this not be the same as a classic
territorial division, but on a different basis? Well, no, because these
different regions or local communities would have no state borders between
them, only their populations’ different allegiances. The two states’ powers
would extend over the whole territory, to their respective citizens in the
whole area, with the economy eventually integrated, and legislation and
jurisdiction either unified, harmonized, or in many cases based on criteria
other than nationality. Local communities would, for example, have powers
over certain matters of regional import, whereas matters such as
communications, roads, traffic rules, and the like would have to be unified
or at least harmonized.

If a village were to opt out of belonging to a particular state—a choice
that could be made by referendum or could be based on nationality—there
must remain a possibility for individuals living in that village to choose
to belong to the other state. One could imagine a system not unlike that in
present-day Europe, where individuals living in a city or village can carry
different passports, and thus have one national identity and another local
or regional identity.

Regardless of the approach chosen, two distinct “heartlands,” each
corresponding to population concentrations, would most likely be formed,
building on present realities. One can picture a scenario with a Jewish
heartland around the coastal plains, and particularly the area around
greater Tel Aviv. Likewise, one can see a Palestinian heartland in areas
around Ramallah and other cities in the West Bank, as well as in Gaza.
Jerusalem is a special case that would require its own approach Such
heartlands could be given special characteristics and be of different sizes
and shapes.

Thus there is a continuum of different scenarios that could be envisaged,
depending on how the question of administrative division was addressed. At
one end there would be a total spread of two separate but parallel state
structures over the whole territory, and at the other one could imagine two
separate heartlands covering most of the territory, each with
extraterritorial jurisdiction over its citizens in border areas and
possible enclaves. The latter scenario would not be very far from some of
the models discussed in certain previous negotiations and peace
initiatives. To a certain extent it can be said to take its point of
departure from the thinking behind the so-called Beilin–Abu Mazen Plan of
1996 but extending the notion of extraterritorial jurisdiction to cover
larger areas on both sides of a border, areas that would be subject to
parallel jurisdiction. Such a construct could possibly be labeled
“overlapping states.”

The situation of Gaza in a Parallel States scenario, as in any scenario,
would require special attention. In comparison to a territorial division
with two Palestinian entities, which would have to be physically connected
one way or another, a Parallel States concept would by definition open up
borders and make such a connection unnecessary, at least in the longer run.
In a transition period, present borders and crossings might have to be
retained temporarily, and could be lifted gradually.

Gaza occupies a limited but territorially contiguous area, and has a
demographically homogeneous population of purely Palestinian origin. This
makes Gaza a natural candidate to become a core area in a future
Palestinian state, as well as in a Parallel States scenario.

Special attention to the specific problems of Gaza would be necessary,
particularly in the economic arena. The Gaza economy would on the one hand
have to be rapidly strengthened, and on the other especially protected in
order to have a chance to grow from its present level and not become a
bottomless pit of poverty in an otherwise wealth-producing economy. To the
extent that the political and religious climate of Gaza is different from
other Palestinian areas and Palestinians in Israel today, special attention
would also have to be devoted to these issues.

 *Economic structure*

In spite of all their differences, the Israeli economy and the Palestinian
economy can be said to constitute one macroeconomy. There are both
institutional and real links among the various nodes of this system. The
whole creates very unequal dynamics, largely characterized by a
center-periphery relationship. The integration that many imagined would
occur in time has not taken place; nevertheless, elements of an economic
union are present. There is an external customs envelope, a common
currency, and the remains of a joint labor market, albeit with great
obstacles, as there are also to the flow of goods.

One of the most important lessons of Oslo is that no sustainable economic
development is possible without a stable political environment and a
resolution of basic political issues. This lesson has, to a certain extent,
been repeated in the past few years. Odds are that concepts such as
Netanyahu’s “economic peace” will suffer a similar fate.

A Parallel States structure could build upon the remaining elements of
economic cooperation, but also upon the basic principle of the free flow of
goods and people between the different parts of the macroeconomy. The aim
would be real integration between the Israeli and Palestinian economies,
building upon their complementarities while avoiding the continued Israeli
structural dominance that was written into the economic component of the
Oslo Accords. Indeed, avoiding the risk of cementing present inequalities
would be a crucial goal and component of any Parallel States structure.
Palestinian development needs would have to be addressed in a realistic and
comprehensive way.

Only if Israel’s economic supremacy (owing to its advanced state of
development in all areas) is balanced with massive international support
directed toward Palestinian development can there be long-term prospects
for a viable and sustainable joint Israeli-Palestinian economy. Should this
be realized, prospects for long-term economic development in a joint
economy under a Parallel States structure could be more promising than
under division in a traditional two-state structure.

One area where the developmental cost of taking a benign view of the
realities of Israeli occupation of Palestinian territory has been
particularly evident is that of water resources. The uneven distribution of
scarce resources is all too apparent, and the gaps appear to be growing.
Sharing authority over common resources is a central pillar of a Parallel
States structure, which makes such a structure particularly suited to deal
with scarce natural resources such as water. Shared sovereignty over water
resources is likely to lead not only to more equitable distribution of
resources, but also to more efficient ways of using them.

*Legal integration and harmonization*

Legal pluralism is nothing new. Two or more legal systems have existed side
by side in several countries and regions throughout history. Medieval
Europe is one example, with the Catholic church, princes and fiefdoms, the
guild system, and other entities each exercising jurisdiction over their
subjects regardless of location. The Ottoman Millet system had Muslim,
Christian (both Armenian and Orthodox), and Jewish jurisdictions existing
side by side, with the legal system following the individual regardless of
location within the empire. In the Middle East as well, civil legislation
has often followed religion, and parallel jurisdiction is a fact of life,
including in Israel.

In a Parallel States structure, each state would have jurisdiction over its
own citizens. This would probably be rather uncontroversial in areas of
Jewish or Palestinian concentration, such as in the “heartlands” that would
be likely to develop. In other regions—such as border areas between the two
communities, in mixed neighborhoods, as well as in Jerusalem—a certain
element of extraterritorial jurisdiction could be envisaged. A large part
of the jurisdiction in these areas would have to be joint or at least
harmonized. Each side could keep its court system, but a system of mixed
courts might have to be developed to take care of clashes of jurisdiction
and other conflicts likely to arise. All of this is complicated, but hardly
impossible to solve, considering historical precedents and similar
situations in other parts of the world.

A Parallel States structure is not inherently designed to promote social,
human rights, or gender issues. Obviously, by addressing the conflict as
such the PSP aims to improve the human rights situation for those who are
oppressed, be it by the other side or by their own. As to gender issues, by
suggesting changes in the legal system on both sides, the PSP offers an
opportunity to introduce legislation that can promote change.

*Jerusalem—one city*

Jerusalem is a special case—in a Parallel States scenario as well as in any
other scenario. Jerusalem as a political and religious symbol requires a
carefully crafted system of government that takes into account the
interests of the two sides, of the three religions, and of all other
elements that together make up the city’s unique character. A system of
parallel jurisdiction seems particularly suited to satisfying the needs of
both Palestinians and Jews, and perhaps Jerusalem might be seen as a
microcosm that could serve as a laboratory for a Parallel States structure
writ large.

Neither a renewed division of Jerusalem nor the continued domination of one
side over the other can be a recipe for a sustainable long-term solution.
The two communities will in all likelihood have to be given a more equal
say in the running of their city, and more equal spaces to live and work
there. A Parallel States scenario could provide the institutional structure
for living together and organizing the limited space in the interests of
both communities and of other stakeholders.

There is nothing in a Parallel States structure preventing both states from
having Jerusalem as their capital. The Israeli side already has its main
political institutions in Jerusalem, and many previous proposals for a
two-state solution have contained provisions for Jerusalem to be the
Palestinian capital.

It would seem that an initial implementation of parallel sovereignty could
be applied to Jerusalem. In fact, many of the various proposed solutions to
the complex issue of Jerusalem have contained elements that are in some
cases close to the Parallel States framework, and some kind of joint
administration is part of almost all proposed solutions, apart from those
that involve one side’s total domination of the other. This applies in
varying degrees to proposals such as the Beilin–Abu Mazen Plan, the Geneva
initiative, the Clinton parameters, and more lately the Jerusalem Old City
initiative, an academic exercise initiated by the University of Windsor in
Canada. The Clinton parameters, with their mix of shared sovereignty both
horizontally and vertically when it comes to the Old City and East
Jerusalem, offer perhaps the closest comparison. A Parallel States scenario
would, however, go much further than any of these proposals in creating a
structure that would guarantee both access for all and the right to live in
the city, as well as a long-term basis for security and the preservation of
identity for both peoples and all three religions.

* Religion—from obstacle to peace to force for reconciliation?*

A Parallel States vision allows citizens of all three faiths to live
anywhere they choose in the whole area, which means precisely that Jews
have permanent access to the biblical heartland of the West Bank and
Jerusalem, which is today the heart of Palestine. The covenantal promise
can then be kept, but without disenfranchising and even dispossessing
Palestinians, while the imagination of the territory of Palestine as a waqf
(an inalienable charitable endowment under Islamic religious law) acquires
a level of political viability it did not previously enjoy.

Indeed, a Parallel States arrangement can help members of all three faiths
transcend the most xenophobic and chauvinistic tendencies of their
identities without challenging their core ties to the land. When
sovereignty is no longer equated with exclusive possession of the land, the
core, religious-derived bond between the individual and territory becomes
easier to see. Competition over the land need no longer be a dominant
factor in sociocultural identity. By changing the nature of citizenship, a
Parallel States framework could encourage the creation of a public culture
that would bring Jews and Muslims, Israelis and Palestinians, toward
visions of a common good.

The creation of two new state structures would encourage and even
necessitate the creation of a new legal environment based on core
international human-rights norms, principles, and laws. Such a grounding
could be much more supportive of the fundamental rights of marginalized and
even oppressed groups, such as women, Druze, Bedouins, and others than the
present state and attendant legal systems are. At the same time, however
desirable this might be from a normative liberal political position,
imposing a much more “European” or “Western” set of constitutional
principles or laws on Jews and Muslims who are quite hostile to such
regimes would threaten the broader Parallel States enterprise. Thus, this
arena would be one of constant negotiation.


* Opportunities and challenges*
A Parallel States structure could meet both Palestinian and Israeli
aspirations to live and work in the whole area that was once the Mandate
for Palestine. Moreover, it could allow for an independent Palestinian
state, and for the Israeli state to be both Jewish and democratic at the
same time (an increasingly difficult proposition under present
circumstances). Such a structure could bring an end to Israeli military
occupation and open up the whole area for free movement of people, thus
addressing as a matter of principle both the Palestinian right of return
and the issue of settlements, two of the most intractable elements of the
conflict.

Most important, the Parallel States vision could provide a way to end the
conflict, and thus alleviate past and current grievances, as well as reduce
the potential for future friction and violence. Incentives on both sides to
resort to violence would be significantly reduced, and a new regional
political situation and new strategic geopolitical reality would likely
emerge, most probably of a less confrontational character.

Of course, a Parallel States structure would also entail a number of
problems and challenges, not least in the security sphere. Among these are
how to balance the joint and separate security forces, and how to organize
internal security, immigration, and border controls. An international
involvement would most likely be called for.

It is clear that a Parallel States structure requires a lot of confidence
between the two sides—maybe more than other scenarios. The two peoples
would have to live close together with different systems to regulate their
lives and protect them. But any other scenario also implies living close
together, thus still requiring a lot of mutual confidence. It is equally
clear that at present there is an almost total lack of confidence between
the sides. Some kind of long-term interim agreement, armistice or
otherwise, might be required to provide the time and space for developing
both confidence and more specific ideas about how to organize the future.
But a vision going beyond short- and medium-term arrangements will
certainly have to be developed to provide the necessary political energy to
proceed.

* Parallel States as an alternative or complement to a territorially based
two-state solution*

The basic impetus behind the PSP is the lack of progress in the current
peace process, or—maybe more accurately—the peace process that was. This
does not mean, however, that the project necessarily has to be seen as
challenging this process (to the extent that it still exists). Even if it
is difficult to imagine, let us suppose that there might be progress toward
a territorial solution, with two states next to each other. Would this make
alternative thinking redundant?

The argument that a separation needs to precede any form of subsequent
integration is a strong one, and cannot be dismissed lightly. Many
Palestinians feel that they need to have their total independence first
before starting to discuss other forms of living together with their
neighbors. And it may be that separation is a necessary first step in any
process that can move forward. But separation in itself does not solve all
problems and leaves a number of the main issues unresolved, foremost that
of refugees. There is also the matter of Israeli settlements in the West
Bank, and the uncertain future their inhabitants would face under many
existing peace plans. Add to these the question of Gaza, and the links
between the different parts of the Palestinian community, and the picture
becomes even more bleak—not to mention when we include the situation of the
Palestinians inside Israel. Thus the prospect that a separation as such,
regardless of the specific proposal, will lead to the end of the conflict
must be regarded as unlikely. It is difficult indeed to see that a
territorial division can contain a fundamental vision for all these
components that offers a better future.

And this is where the vision of parallel states comes in as one that could
provide hope, even as a complement to other alternatives, since it is built
upon the inevitable need to find a way for the two peoples to live
together—something that many on both sides know they will have to do
someday, perhaps sooner rather than later.

*Excerpted from One Land, Two States: Israel and Palestine as Parallel
States, edited by Mark Levine and Mathias Mossberg, published by the
University of California Press. © 2014 by Mark Levine and Mathias Mossberg.*





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