It should be clear that neither a one-state nor a two-state solution can work for the Israeli-Palestinian dispute. The Palestinians are divided, and lack the capacity to effectively govern their areas of responsibility. However, they do show some capacity to govern at the city level.
Perhaps the best option is an eleven-state solution: Israel would be
one. The others would be Gaza, Nablus, Hebron, Jenin, Jericho,
Ramallah, East Jerusalem, Tulkarm, Qalqilya, and Bethlehem. Cities with divided populations would be split between the two peoples.
Israel would formally declare war on each, and separately negotiate
peace treaties with each, establishing their boundaries and
governments. The Palestinians would get the the territories occupied
by those cities together with a surrounding buffer area around each,
suitable for building, to allow for expansion. Israel would get all
the territory in between, which would include all their settlements,
and a strip along the border with Jordan.
The Palestinian city-states would be encouraged to unite in a
federal union which could represent it in the United Nations, but it
would initially not have much power at the local level. Over time
that might change, and boundaries might be adjusted.
This will not satisfy Palestinian aspirations, but it reflects the
reality on the ground, which is the only thing that can be the basis
for a lasting solution.
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