Bundesheer

Since the launching of Peace Process in 1991, the Middle East has been undergoing a transformation that some still hope will set the stage for a final chapter of the Arab-Israeli conflict and result in greater stability and economic prosperity in the region. However, eight years after the launching of the Madrid conference, the anticipated ‚peace dividends‘ is yet to be felt and there are more and more disillusioned voices claiming that the peace process has failed to reach the conclusion broadly aspired to. Today, the merits and pitfalls of Oslo have remained a highly disputed topic among the Palestinians, for whom it has become obvious that Israel - through five different governments - has pursued a strategy of containment, at the best.

This paper traces the various steps of the peace process since 1991 and analyzes why it has thus far failed to deliver a peaceful settlement of the Palestinian-Israeli conflict. It further examines the current political environment since the election of Ehud Barak, with a special focus on the outstanding issues to be negotiated in the final status talks. In doing so, the paper argues that successful negotiations - providing the basis for a just and lasting peace - will depend to a great extent on there being a genuine desire and determination on the part of both sides to reach feasible compromises and a formula with which they can live without feeling defeated or sold out. This in turn will require especially on the part of the Israelis the willingness to stop hiding behind the shield of security.