A marjah is the highest authority on religion and law in Shiism. Where a difference in opinion exist between the Marjah, Aalims (Religious Scholar) try to provide different opinions. Four senior Grand Ayatollahs [Ayat Allah] constitute the Religious Institution (al-Hawzah al-`Ilmiyyah) in Najaf, the preeminent seminary center for the training of Shiite clergymen.
Taqlid means acting according to the opinion of the jurist (mujtahid) who has all the necessary qualification to be emulated. So you do what the mujtahid's expert opinion says you should do, and refrain from what his expert opinion says you should refrain from, without any research [in Islamic sources] on your part. It is as though you have placed the responsibility of your deeds squarely on his shoulders. Among the conditions which must be found in a jurist (mujtahid) who can be followed is that he must be the most learned (al-a'lam) jurist of his time and the most capable in deriving the religious laws from the appropriate sources.
There are generally six ranks among Shi'ite clerics. The highest, grand ayatollah means "great sign of God". In the past, there were usually no more than five grand ayatollahs in the Shi'ite Islamic world. Today however it is suspected that there are at least seven and possibly more. Under grand ayatollah is ayatollah ("sign of God"). Below ayatollah is the rank of hojat al Islam, which is Arabic for "authority on Islam". Next is mubellegh al risala or "carrier of the message". While mujtahid often refers to clerics in general, it is also a specific rank, which denotes one has graduated from a religious seminary. At the bottom of the ladder are religious students, talib ilm. Besides the obvious factors such as graduation to be promoted to mujtahid, promotion in the ranks is a rather subjective matter. Two important factors behind promotion are the size and quality of one's student following and authorship of scholarly works on Islam.
As noted above, there are only a handful of guys alive who have reached the top level. Here's the list I was able to assemble from online sources: Al-Sayyid Ali al-Sistani, Muhammad Said Hakim, Muhammad Ishaq Fayyad, Bashir Hussein al-Najafi, Mohammad Taqi al-Modarresi, Hassan Tabataba'i-Qomi, Muhammad Sadeq Ruhani, Kazem al-Hosseini al-Haeri, and Hossein-Ali Montazeri, the first five of whom are in Iraq.
Sistani, whom we all know about by now, is the top dog. Grand Ayatollah Muhammad Said Hakim is the uncle of Ayatollah Muhammad Baqir al-Hakim, who was murdered last August by a massive car bomb outside the Imam Ali Shrine in Najaf. Tawhid wal Jihad, Zarqawi's group, is the most likely culprit. Grand Ayatollah Hakim himself was wounded in the neck during a bomb attack on his home at around the same time. Fayyad and al-Najafi put the quiet in quietist; they tend to stay out of political matters altogether. Al-Modarresi I hadn't heard of before because he isn't generaly mentioned among the top four Iraqi Grand Ayatollahs, but from what I can tell he's a moderate based in Karbala. The English website of one of his younger relatives is here, and his own site is here. Grand Ayatollah al-Haeri is a hardliner based in Qom, Iran, and had until their recent split been Muqtada Sadr's mentor. As of 2002, Tabataba'i-Qomi and Ruhani had been under house arrest for many years, and there's another Grand Ayatollah named Ya'sub al-Din Rastgari who was placed under house arrest in 1996, but I'm not sure whether Rastgari is alive or dead. I think Ruhani may have a brother who is a Grand Ayatollah as well, but I'm not certain.
I'm in the middle of reading Ken Pollack's new book, The Persian Puzzle, and it made the following point that for some reason I hadn't realized before. As you can see from the above list, the current Supreme Leader of Iran, Ayatollah Khamenei, isn't a Grand Ayatollah. The rules had to be changed to allow someone of his low stature to succeed to the rulership over Grand Ayatollah Montazeri, who had been Khomenei's designated successor but was deemed insufficiently radical when he criticized some of Khomenei's repressive policies (Khomenei's letter to Montazeri is pretty harsh). Khamenei's website reveals his insecurity about his position; everyone knows he didn't get where he is by scholarly merit. The unshackling of Iraq's Shi'ites represents a direct threat to Khamenei's legitimacy in the sense that now the center of Shi'ite learning is in Najaf, which is led by several clerics of higher rank and with a different judicial philosophy. In addition, Khamenei's rival Montazeri has recently re-emerged in Qom after serving five years under house arrest for criticizing him and the regime, and has since been surprisingly outspoken on reform, civil rights, relations with the United States, and, most recently, the Israeli-Palestinian conflict. I'm not sure why Montazeri has been so emboldened, but my guess is that the return of Najaf has something to do with it. Sistani has showed signs of picking off Qom's other top religious scholars, according to Amir Taheri and the good folks at Benador Associates. Even if the Sunni areas of Iraq continue to be chaotic and violent, the undermining of the Islamic Republic's radical, klepto-theocratic rule may make the whole thing worthwhile after all.

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