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There are three major reasons for this view.

Shi'a Brotherhood

Iran and Iraq have a very strong religious connection, namely that the majorities of both countries are Shi'a. There is also a strong historic connection between the populations of Iran and Iraq. However, all of the dictatorships (from the Umayyad's onwards) in Iraq were ruled by Sunnis who repressed the Shi'a culture, prevented Shi'a from visiting their holy sites and celebrating their holidays. Since Iraq is the one of the few majority-Shi'a states, Iran wants to build a strong cultural connection. A democracy allows the Shi'a to become the majority and this cement this relationship. (This type of relationship is similar to how the United States and Canada, which are based on similar historic circumstances have a strong relationship.)

Expansion of Iranian Influence

Iran is looking to be a regional power and for many years Saddam Hussein and Iraq in general were checking Iranian influence. Iran currently supports Hamas and Hezbollah to control politics in Palestine and Lebanon respectively and directly supports the Syrian Dictatorship of Bashar Al-Assad. If Iran supports democratic parties in Iraq that eventually clinch the seats in Parliament, they begin to have a hand in influencing the direction of Iraqi Policy and have an ally instead of an adversary on their borders.

Similar Pasts, General Positivity

Iranians like anybody else, like people to be free to express their own desires and choose their own destiny. Iran sees its government as the response to a people being repressed by the Shah and desiring an alternate route. Similarly, Iraq was held down by Saddam Hussein and the new government allows Iraqis to voice their own opinions, choosing their own destiny.

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Q: Why does Iran want a democratic Iraq?
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