As we stand at the beginning of a new millennium, there is no single spiritual leader of all Muslims. Islam as a religion does not have clergy. Interpretation of religious sources and spiritual leadership are open to any Muslim with knowledge and potential. Community and people accept and acknowledge spiritual leaders based on their religious qualifications and personal piety rather than through the appointment of state or religious establishment.

Out of the need to have unity in the Muslim world, the institution of Caliphate (succession to the Prophet) appeared immediately after the Prophet Muhammad. It has impacted on the intellectual, administrative, social and political development of the Muslim society until ^rd of March 1924 when the new Turkish Republic abolished this very important institution for all Muslims.

The caliphate is a system where religious and worldly affairs are managed by the people under the leadership of a Caliph. Initially, the first four Caliphs (total period in office was 30 years) were elected by the people. Due to the prevailing circumstances of the time and the norm around the world, the democratic process lapsed back into leadership formed by dynasties. This development was predicted by the Prophet Muhammad who said, "the caliphate is for thirty years. After that will come dynasties."

Throughout the majority of Muslim history, even though the Caliph was the leader of the Universal Muslim State, the Muslim world consisted of smaller regional powers and states whose leadership would seek approval from the Caliph. The Caliph represented all Muslims but did not interpret religion or bring new changes to it. Religious interpretation lay with the learned scholars and the people themselves. The institution of Caliphate was used to its full potential to unite and defend the Muslim world by the Ottomans from sixteenth century onwards.

For the majority Sunni Muslims, the Caliph or the Imam (leader of Muslims) is fallible and elected among the Muslims based on competency and leadership. In the minority Shiite tradition, about 15% of the total Muslim population in the world, the Imam is considered infallible and should come from the descendants of the Prophet. The Ayatollah, meaning 'the sign of God' is the spiritual leader of all Shiite Muslims. Sunni Muslims do not recognise the Ayatollah nor do they reject him outright. The majority Sunni Muslims do not follow the sanctioned ruling of the Ayatollah, who is chosen by the religious establishment of Iran.