By the end of 1994, the Arab-Israeli peace process had reached a critical threshold. Despite significant achievements, the future of the peace process was threatened by terrorism, communal violence and stalled negotiations. The timing of elections will be a key factor in both Israel and the USA. With US presidential elections in November 1996 and Israeli parliamentary elections also expected in 1996, time is running out before several central figures, most notably Israeli leaders, are distracted by domestic concerns. Many of the organizations and countries that oppose the Arab-Israeli peace process have little concern for deadlines. Extremists on many fronts are actively seeking to undermine the process and bring back the days of confrontation. At the heart of the Arab-Israeli conflict, Arafat's precarious position is a concern for all sides. He lacks the funds and the institutional base to quickly provide social services or economic benefits to the Palestinian people. With the security-minded Israelis on one side and the Islamist forces led by Hamas on the other, he has little room for manoeuvre or margin for error. There are already many obstacles, and the final negotiations on the status of the West Bank and Gaza Strip are not due to start until 1996. If Arafat were toppled, chaos could result or a group that rejects the peace process could take power.

On the positive side, Israel and Jordan signed a peace treaty, and Israeli and Palestinian negotiators produced several new agreements to implement the 1993 Declaration of Principles and begin the programme of Palestinian self-rule. On the regional level, multilateral talks began to build a foundation for regional cooperation on a number of subjects, including economic, military and environmental issues. However, bilateral talks between Israel and Syria did not produce any major breakthroughs.

In 1994 the peace process moved forward in ways unthinkable just two or three years ago. All the participants should take pride in the advances and moves towards peace. However, many significant problems remain unsettled. Israeli-Palestinian and Israeli-Syrian progress holds the key to a complete break with the Arab-Israeli history of hatred and warfare. A final resolution of the conflict will have to wait until 1995 and beyond.