Barack Obama's inauguration as America's 44th President, attended by one million people in Washington and watched by millions on television worldwide was remarkable and indeed historic. Besides the extraordinary significance of the US having its first African-American President, Obama's speech was that of a born leader and one which inspired hope and confidence. It also signalled a decisive break after the Bush years.
Obama's sober yet moving speech included themes that had formed the central platform of his electoral campaign but was also very conciliatory and reached out to political opponents. The new President signalled America's readiness to lead the international community once again and promised a "new era of responsibility" in which he would rebuild the economy, create jobs, invest in the nation's infrastructure and restore America's standing in the world. In a direct reference to climate change he said: "We will restore science to its rightful place".
Obama praised American history, tradition and values without sounding chauvinistic and also reminded his audience of America's errors. He was realistic in spelling out America's huge challenges and made it clear that it would not support foreign leaders who cling on to power through "deceit" or "corruption".
Obama implied a substantial shift in American foreign and security policy saying: "US power alone cannot protect us, nor does it entitle us to do as we please". He also said: "As for our common defence, we reject as false the choice between our safety and our ideals". Addressing the Muslim world he remarked: "We seek a new way forward, based on mutual interest and mutual respect".
Obama's challenges, both on the international and domestic front, are certainly overwhelming, but his inaugural speech certainly set the proper framework for these to be met. He has to deal with two unpopular wars in Iraq and Afghanistan, turmoil in the Middle East, instability in nuclear-armed Pakistan, Russia's resurgence, China's rise, the challenge of Iran's nuclear programme and the problem of climate change.
He has made a good start in international and security policy. The day after his inauguration he phoned leaders of the Palestinian Authority, Egypt, Jordan and Israel to commit the US to active engagement in the Middle East. He then appointed former Senator George Mitchell - who had negotiated an end to the troubles in Northern Ireland - as special envoy to the Middle East, and former Ambassador to the UN Richard Holbrooke - who brokered the 1995 peace deal in Bosnia - as special envoy to Afghanistan and Pakistan. Both appointments are good choices and show the importance the new administration attaches to challenges posed by the Middle East, Pakistan and Afghanistan.
Obama has also ordered the Guantanamo Bay prison camp to be closed within a year, the immediate closure of all overseas CIA secret detention centres for terror suspects, a 120-day suspension of military trials for terror suspects at Guantanamo to allow the new administration to overhaul its policy on the "war on terror" and a ban on harsh interrogation methods - usually amounting to torture - on terror suspects.
Domestically Obama's challenges are equally daunting. He must deal with a severe recession and the loss of jobs and convince Congress to agree to his various stimulus packages to rescue the economy. He has also promised comprehensive health care reform, something none of his predecessors achieved. The president will also need to look closely at the US financial and banking system responsible for the crisis engulfing America. During his inaugural speech Obama said: "Our nation is badly weakened, a consequence of greed and irresponsibility on the part of some but also our collective failure to make hard choices".
Obama also signalled fresh thinking about dealing with the economy and the role of government when he said: "This crisis has reminded us that without a watchful eye the market can spin out of control. The nation cannot prosper long when it favours only the prosperous". On the government he remarked: "The question we ask today is not whether our government is too big or too small, but whether it works".
Can the President succeed in dealing with the many challenges ahead? Obama has all the goodwill to be successful. He seems to possess the necessary qualities: he is an intellectual yet can easily relate to ordinary people, he has an incredible ability to inspire people, he believes in governing from the centre of the political spectrum, he is a listener and is totally committed to the rule of law and America's engagement with the world.
His strong belief in consensus implies that he could have a good relationship with Congress, which is essential for any presidency to succeed. Obama's task will not be easy, but he seems to be just the right person at the right time to turn things around and return America to its rightful place on the world stage.