Is Amnesty International's statement likely to impact policy?
No. I love AI, but they're surprisingly easy to ignore outside of the US and Europe.
What steps would Iran need to take to reverse current trends?
Iran wouldn't take steps to reverse current trends. The Leader and council
Is it ingrained throughout the system, or would a simple change in leadership be effective?
In this case, a change of leadership is absolutely necessary. The opposition are challenging the legitimacy of an illegitimate (though ultimately unimportant) election, but in actuality we may be seeing the beginnings of revolution or even civil war in Iran. It's in the interest of the current "administration" to keep these people afraid, even though it's mostly just a temporary way of dealing with the problem. Totalitarian regimes function the way they want to when things are just comfortable enough to not revolt. They crossed the line with this election and now things are getting worse and worse. Snowballing into revolution would be very bad for Khamenei, though ultimately I feel it would be best for Iran. Real, home-grown revolutions in the face of tyranny stand the best chance of giving rise to peaceful, stable democracies.
How does Iran's lack of civil rights impact other nations?
Indirectly, I suppose. The west still seems interested in demonizing Iran, and this is giving those fear mongers a bit of ammunition.
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