Identity change in Israel has been an important factor in the changes that enabled the initiation of the peace process in the early 1990s. Identity change was related to new opportunities associated with globalization and a growing desire among middle and upper class Israelis for normalization or a lifestyle equivalent to western democracies. This so-called pragmatic perception entailed a cost-benefit view of the territories occupied in 1967 and was carried forward by an empowered business elite that since the mid-1980s sought to liberalize and globalize Israeli society. But this identity change remained at the elite level and alienated significant constituencies. Even among the elite, it had more to do with global opportunities and less with conflict resolution. This instrumental conception of peace was insufficient to sustain the Oslo process.