Michael McFaul and Abbas Milani in the Boston Review:
Recent developments in Iran have convinced advocates of both “softer” arms-control approaches and more hard-line regime-change strategies that their analyses are correct and their policy prescriptions are working. The arms-controllers see a Tehran more willing to negotiate; the regime-changers see increasing repression. Though evidence for both claims can be marshaled, neither offers balanced insight into Iranian behavior or a sensible strategy for breaking the decades-long impasse in U.S.-Iranian relations. We need a novel approach, a third way—simultaneously pursuing arms control and democratization by means of engagement, not coercion.
Today Iran seems to be more willing to find a negotiated settlement to its problems with the international community. The April 2007 crisis over the British sailors held captive in Iran was solved with unexpected alacrity and relative ease. Moreover, Supreme Leader Khamenei has reportedly given Iran’s chief nuclear negotiator, Ali Larijani, new special powers to negotiate on the nuclear issue (a meeting between Larijani and the EU’s Javier Solana suggests that there is something to the reports). At a May 2007 conference in Sharm el Sheikh, Egypt, Iranian diplomats met with their American counterparts. Meanwhile, Iranian advocates of confrontation with the West, lead by President Ahmadinejad, have recently suffered a sharp decline in power.
More here.