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In biblical term, many times the word 'babylon' represents not the actual city but to convey rebellion, false religion, demonic control over the territory, etc.
In Revelation, the realm of the beast is represented by Babylon -- where as a community mankind rebelled (Genesis 11). So today any government excercising Saddam-like (or Fidel Castro, Kim Jong Il, etc) power would be considered a BEASTLY government.
In my view, Iran is under the grip the beast (spiritual oppression).
Until this beast is destroyed, the people within the realm will suffer persecution, human rights abuses, lack of freedom, etc.
Christian or not, God desires that the government be good and fair -- for God loves mankind (Romans 13). But Satan wants to control mans destiny and keep him under tyranny (Revelation 13, the beast)
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