Beyond the Binary: Two States, One State, Failed State, No State

Though the international community has hailed the two-state solution since the early 1990s, it has become clear that Israel’s fragmentation of Palestinian people and territory over the past 50 years aims to make a sovereign Palestinian state impossible. While politicians explain this as a result of misunderstandings or missed opportunities between the two parties, the accurate explanation is that Israel does not, in fact, desire two states. This outcome would undermine its goal of conserving preferential rights for Israeli Jews in the territory under its control. Numerous progressives now argue that one state with equal rights for all is the logical alternative. While such a binational state may be just, it is highly unlikely, especially in the short to medium term.

A number of more cynical alternatives are more probable:  

  • A prolonged and intensified status quo would see continued Israeli management of a non-sovereign and dependent Palestinian entity in the West Bank, as Al-Shabaka analyst 24378 has pointed out. A temporary solution for Gaza could be reached with Egypt, with limited movement of goods and people. The Palestinian Authority (PA) would remain a group of elite intermediaries to the Palestinian population, and the Palestinian entity’s lack of fiscal or developmental capacity would help render it a failed state.
  • Over time, this scenario could become more deeply institutionalized through a permanent no-state solution, as my own analysis shows, whereby Israel perpetually controls the Palestinians while assigning some domains of governance to a non-sovereign local authority.
  • A similar outcome would involve three states comprising Israel, a demilitarized mini-state in the Gaza Strip contained by Egypt, and a (settler) “State of the West Bank.”

The potential chaos of the post-Abbas era amplifies the likelihood of these scenarios. Any violent struggle for power within Fatah would lead to further fragmentation, and would strengthen Israel’s ability to promote statehood for Palestinians in Gaza while entrenching its presence in the West Bank. If the PA were to collapse, a wave of migration toward the East Bank could further increase the possibility of these outcomes.

Policy recommendations

1. Those serious about a solution to the Israeli-Palestinian conflict must move beyond the one or two-state binary and discuss the implications of a no-state solution for Palestinian self-determination.

2. Palestinians must recognize the potential for the status quo to become a permanent erosion of their rights in the absence of successful resistance strategies.

3. The international community must relinquish its assumption that the status quo is a post-Oslo transitional period, along with its “wait and see” approach. It must admit the failure of this policy and establish enforcement mechanisms, including regarding breaches of international law, that threaten to ossify the condition of apartheid.

To speak to Amal Ahmad or Asem Khalil, please email [email protected]

Amal Ahmad is Assistant Professor of Economics at Wageningen University in the Netherlands. Her work focuses on development and political economy, particularly on how economic resources and political power intersect, shape institutions, and inform development prospects, and her regional focus is on South Asia and the MENA region. Amal obtained her PhD in Economics in 2021 and previously interned at the Palestine Economic Policy Research Institute. Her scholarship on Palestine has appeared in Defence and Peace Economics, the Palestine Economic Policy Research Institute, and the Rethinking Economics Network, among others.

Latest Analysis

 Politics
As the US and Israel escalate their assault on Iran, the Israeli regime has been constructing a war economy to sustain prolonged military campaigns while evading accountability. In September 2025, Prime Minister Benjamin Netanyahu urged Israelis to transform the country into a “Super Sparta” of the Middle East—more militarized, economically self-reliant, and capable of sustaining protracted conflict despite mounting external pressure. This policy brief argues that this rhetoric reflects an emerging doctrine: a political-economic project structured around permanent national mobilization, preventative warfare, and accelerated defense-industrial expansion. Yet the Israeli regime’s shift toward self-reliance is not producing full autarky. Instead, the war economy is consolidating into a hybrid model that combines domestic substitution in critical defense sectors with deeper integration into transnational supply networks, thereby dispersing sanctions risk. This configuration blunts the impact of conventional accountability tools, such as fragmented or weakly enforced arms embargoes. As a result, effective international responses must move beyond traditional sanctions frameworks and instead target the material infrastructure and dependency nodes that sustain Israel’s war economy.
Ahmed Alqarout· Mar 11, 2026
 Politics
Noura Erakat and Jake Romm joined us for a policy lab episode on how Gaza helped shatter the old status quo and what that break reveals about the world being built in its wake.
 Civil Society
On November 4, 2025, the UK government tabled an amendment to the Crime and Policing Bill to curtail protest rights under the pretext of “cumulative disruption.” The revised Bill is now in the House of Lords Committee, where it is scrutinized before advancing toward final approval. The amendment signals a profound shift in how the state regulates public protest. While the government presents the Bill as a neutral public order measure, it emerges directly from sustained national demonstrations for Palestinian rights and introduces new legal concepts that threaten long-established democratic freedoms. This roundtable examines the Bill’s political drivers, legal architecture, and wider implications for social movements and civil liberties in the UK. It shows that the amendment is not simply a public order measure; it is a coordinated political and legal project to narrow the space for dissent in the UK. While Palestinian solidarity is the immediate target of the crackdown on freedom of assembly, the roundtable argues that the consequences will reverberate across labor organizing, racial justice, climate activism, and broader democratic participation.