drawing room

Iran and Palestinian-Israeli Peace

The rise of Iran has made the timing ripe for a new strategy for an Israeli-Palestinian peace. Here’s why: The primary divide in the Middle East is between the forces of moderation and those of extremism. Iran and the radicalism it supports has created a potential alliance among moderate Palestinians, Israelis and the leaders of Saudi Arabia, Egypt, Jordan and the gulf states. And, it’s in all of their interest to work now for a comprehensive solution.

The good news is that Condoleezza Rice and Israeli Foreign Minister Tzipi Livni are spearheading an ambitious new diplomatic initiative for achieving such a peace. Their strategy is to put aside the step-by-step road map, which requires that the Palestinians dismantle their terrorist infrastructure before any new phase of negotiations begins, and instead leap right to final-status talks with moderate Palestinians about what a two-state solution would look like. If a suitable framework for a Palestinian state is reached, Abbas would then go to his people with a referendum: Do you want it or not? He is convinced that more than 70% would vote yes, thus marginalizing the Hamas resisters. Olmert would do the same, and probably get close to the same support.

The region needs this breakthrough. Hope they succeed.

Google Options

Stop me if you heard this before. Google is trying his hand again at financial innovation with their attempt to create a market for employee share options. The theory is sound. Many employees do not recognise the real value of their options, so allowing them to be sold in a transparent market, once vested, would demonstrate their value. It should also help Google recruit those who are worried that the company’s amazing share price run has left little upside. But it also sends a worrying signal, as Financial Times points out today:

Options are meant to give employees an incentive to work hard and remain with a company in the long term. Under this scenario, employees would be able to crystallise part of the value of the future years of an option right now.

That is hardly the best way to keep people when things get less rosy. And they will.