There are, theoretically at least, three alternative outcomes to any Israeli-Palestinian peace process: a two-state solution, a one-state solution or the present situation, which is to say no solution. So far most Palestinians (and other Arab governments) and Israelis have preferred the status quo to any alternative outcome that the other side would accept. Moderate Arabs and Israelis support, in principle, a Jewish state and an Arab state living side by side in the former Mandate of Palestine. There are elements on both sides that favor a one-state solution, covering all or most of historic Palestine, although they obviously differ on exactly how that resultant state would be formulated and how Arabs or Jews would share power within it.
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