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This article advocates the use of institutional theory study the development of Islamist political parties. The author notes that civic institutions are weak in Muslim countries generally, magnifying the threat posed by Islamist political organizing. The problem of developing civil society is presented as a function of the authoritarian political systems of Muslim countries. The examples of politicized Islam in the authoritarian states of Iran and Saudi Arabia presented as instances where the Shari'a law and ideas about the politicisation of Islam have served to undermine democratic principles.

This article focuses on the two political factions in Iran, the Jihadi (traditionalist combative) and the Ijithadi (creatively interpretive) and their competition and accommodation since the Revolution. The author argues that US-policy and developments in the region have favoured the Jihadis and enabled President Ahmadinejad to act more intransigently and assertively than would otherwise been the case. At a time of profound shift in the sectarian and strategic balance in the region, the challenge for the US and its allies is to widen the arena for Ijithadis within Iranian politics. [ABSTRACT FROM AUTHOR]