The two-state solution is the only solution

A two-state solution following international law is the only viable solution for stopping the senseless violance.

The conflict between Israel and Palestine has intensified recently. Attacks are becoming more frequent, leading to an increase in the number of innocent people killed. It is necessary to find a solution to this situation before the magnitude of the conflict escalates further, with other countries taking a position in the dispute. 
The most coherent solution appears to be the two-state solution, which aims to stop the carnage by both parties, establish consistent security for people of both nations and rebuild both the Palestinian and Israeli economies.
A key event for this would be welcoming Palestine as a UN member state. 
Although there is still much work to do, Palestine has made good progress in its recognition as a sovereign state. As of 29 January 2024, this acknowledgement has been granted by 139 out of the 193 UN member states. Some, like Spain, have signalled a potential future recognition as well. 
Despite the Palestinian Authority's adherence to UN Security Council resolutions advocating for a two-state solution, which is based on the borders set before 1967, and its attempt to become a member of the United Nations, it has been impossible for them to achieve membership status yet.
A viable path toward peace lies within the framework of the United Nations, since both Arab and Islamic nations have persistently advocated for peace with Israel. They believe the two-state solution endorsed by the Palestinian Authority is the ultimate solution for this problem that has existed for decades. 
In the last quarter of 2023, during the Joint Arab-Islamic summit in Riyadh, its members advocated for initiating the process of adherence to international laws and pursuing the two-state solution. This would bring an end to the Israeli occupation encompassing Palestinian territory – the territories would be divided according to international laws, and both countries would have marked boundaries. The outcome of these actions, according to Arab countries, will lead to peace between Arabs and Israelis.
A comprehensive UN Security Council resolution for a constructive peace process should include the prompt recognition of Palestine as a UN member state (the 194th), with borders dating back to June 4, 1967, incorporating East Jerusalem as its capital and asserting control over the Islamic Holy Sites. Additionally, it should involve the liberation of all hostages, a determination of a lasting ceasefire from both, and the unconstrained flow of humanitarian help, all supervised by the United Nations.
The resolution should also outline the deployment of peacekeeping teams in Palestine, entirely operated by the United Nations Security Council and with no interest in the conflict. A neutral group of nations, impartial in the war and the interests of those two countries, would be ideal. 
Furthermore, it is essential to remark that Hamas, along with any other military groups, should be disarmed and demobilised by the peacekeeping teams mentioned above, to show the initiation of peace.
Lastly, it is essential to establish diplomatic relations between Israel and all Arab League states concurrently with the UN membership of the State of Palestine. There would still be a lot to negotiate since both parties must agree, among other things, on the boundaries of each nation. 
However, these negotiations must occur peacefully under organisations that ensure the deal is legitimate, namely the United Nations Charter and the Universal Declaration of Human Rights. Rulers from both nations should make an effort to cooperate and understand that the war will only bring more pain and suffering to their people.
However, not everyone is interested in this war (or any other) being over, especially those who are involved with the weapons industry. It is well known that the weapon industry is one of the most powerful actors in the international arena since countries always want to be ready in case any other nation decides to attack them. Besides, weapons can be used as a warning against other countries since you do not want to deal with a well-armed nation. 
According to Statista, military spending in the United States in the fiscal year was $876.94 billion, allowing these companies to boost their revenues yearly. Brown University conducted a study in 2021, revealing that over 30% of recent Pentagon contracts were awarded to just five major weapons contractors, among which we can highlight Lockheed Martin and Boeing. 
Following the Hamas attacks and Israel's invasion of Gaza, the stocks of these companies increased by 7%. Therefore, prolonging Israel's war on Gaza will allow the military-industrial sector to enjoy the spoils of warfare, even if it is at the cost of innocent human lives.
The implementation of a two-state solution between Israel and Palestine provides a unique opportunity for fostering economic ties that can be mutually beneficial for both nations. 
First, both countries will enjoy a certain level of geopolitical stability. A nation cannot prosper if the fear of attacks persists. With the absence of those potential perils, there is an opportunity for their economies to grow. More people inside and outside these countries will consider starting businesses there, leading to higher job opportunities. As a result, the GDP of those countries will increase. 
Besides, with the establishment of distinct and recognised borders, there is potential for collaborative economic initiatives that contribute to the prosperity and development of Palestine and Israel. 
Joint efforts in trade, investment, and infrastructure projects can create a framework for shared economic growth. Although this may sound utopian for now, history has shown that it is not impossible. A clear example is the case of Germany, which was at war with most European countries. 
Using their strengths and resources together, like technology and skilled workers, the two states can create a beneficial economic relationship supporting each other's economies. Working together in areas such as tourism, agriculture, and renewable energy could create jobs and improve the living conditions for people on both sides. 
Besides, promoting economic connections after the two-state solution could bring stability to the region and add to peace and prosperity. Through joint economic projects, Israel and Palestine can build shared interests beyond politics, leading to lasting cooperation and living together peacefully.
The Palestine-Israeli territory is historically considered a holy land by three Abrahamic faiths – Judaism, Christianity, and Islam. Like Mecca in Saudi Arabia, these two countries could unite and "invite" the rest of the world to visit their territories. This would undoubtedly boost tourism in the area, leading to economic prosperity. 
On the other hand, the territory has oil deposits that can be utilised. Once again, following the example of Saudi Arabia, these two nations could utilise their oil deposits and become wealthier countries. Although having oil deposits does not guarantee success, as seen in the case of Venezuela, if governed by capable leaders, the probability of making a profit is high.
However, all the above propositions are impossible without rebuilding the two economies. If the United Nations recognises Palestine as a UN member and establishes a two-state solution, there would be a need to come up with a plan to rebuild both the Israeli and Palestinian economies. 
The war has weakened both economies, and prosperity in that area will only be achieved if their economies are reconstructed. And to accomplish that, peace between the two nations must come first. 
Because of the complexity of wars and all the interests around them, it is never easy to devise a solution beneficial for both parties. Each party always tries to look after themselves, and they hardly ever think about the consequences for the other party. 
However, in this case, the sole solution seems clear: a two-state solution following international law, stopping the carnage of war and rebuilding the economies of Israel and Palestine. Only if that is achieved will both parties be able to prosper. Otherwise, more years of uncertainty, pain, and injustice are yet to come.

M. Kabir Hassan is a Professor of Finance at the University of New Orleans, USA.
José Antonio Pérez Amuedo is a doctoral Student at the University of New Orleans, USA.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.