You gotta give U.S. Secretary of State John Kerry credit for persistence -- or maybe just perverseness -- in his efforts to restart the Middle East "peace process." Given the complete failure of the past two decades of peace-processing, you might also wonder why he's bothering. My guess is that he does realize that the Israeli-Palestinian conflict is still a significant problem for the United States, as well as a source of continued human suffering. The fighting in Syria and the continued struggles in Iraq, Egypt, and elsewhere may command more attention these days, but the situation in Israel/Palestine remains a potent source of anti-Americanism and a constant headache for every president. Plus, Kerry is an ambitious guy, and who wouldn't like to be the hero who finally managed to put this century-old conflict to rest?
News reports suggest that Kerry is trying to advance this goal by employing a time-honored tool of Middle East diplomacy: bribery. No, I don't mean direct under-the-table payoffs to key leaders (although the United States has done plenty of that in the past and I wouldn't rule it out here). Instead, I mean offering the various parties big economic incentives to lure them back to the table. Back in the 1970s, for example, Henry Kissinger got Israel to withdraw from the Sinai by promising it enormous military aid packages and assorted other concessions. Jimmy Carter did the same thing when he brokered that Egyptian-Israeli peace treaty in 1979, and U.S. largesse also greased the subsequent peace deal between Israel and Jordan in 1994. When domestic politics make it impossible to use sticks, carrots are all you have left.
For the rest of the story: http://walt.foreignpolicy.com/posts/2013/05/28/bribing_our_way_to_peace