US, the greatest ally of Israel adopted the UNSC resolution allowing the security council to condemn the creation of settlements by Israel on occupied territory. US Secretary of state warned the country that the only peaceful way to resolve the conflict was to adopt the two nation theory. The two Nation theory wants a creation of two nations - one for the Israelis and other for the Palestinians. The questions now are about the division of territories for these nations. The two nation theory has been the basis for peace talks and has been accepted by agencies like US, UN and even Israel and Palestine.
- Borders: The main source of conflict has been the decision on the border areas. The generally accepted view is that the pre 1967 war border be accepted as the dividing line. However the things have become complicated as Israel has built settlements and borders with West Bank making it difficult to divide the territory as with time the people in these settlements would grow. The independent state of Palestine when created would thus have to be with a different border.
- Jerusalem: It has site considered holy by all three religions like Christianity, Jewish and Islam. However these sites are all close to each other and thus the city can’t be effectively divided. Both the sides , Israel and Palestine want to make Jerusalem their capital. A compromise had been put forward by dividing the city into an Israel west and Palestine east. However Israel has built settlements even in the eastern city.
- Refugees: Nearly 5 million refugees had to flee to Palestine from the territories that were a part of what is now Israel. This crisis happened during the 1948 Arab Israeli war that led to the creation of Israel. These refugees want to return their original homeland. This is not acceptable to Israel as it would make the Jewish population a minority in their country.
- Palestine wants Israeli soldiers to leave West Bank. This would make the country vulnerable to attacks from the East. Israel also is vary of the capture of West Bank by the militant group Hamas that threatens to compromise its security. Hamas is now in control of Gaza, ever since 2005 [after Israel left Gaza].
The problems with the two-nation theory mean several alternatives have been proposed.
- A single united nation that shall be democratic but secular.
- A democratic nation but with limited rights to non jewish people.
- Two nation theory with a contiguous palestine.
However each of these has its cons and so a settlement has not been in sight. The current Jewish leadership to seems to be against the 2 Nation theory in practise.