The whole world is euphoric following the US Presidential election in which first-term Senator, Barack Obama, stole the show in swashbuckling style, breaking with his country's racial past. His triumph is being regarded as the end of the Civil War in the US with Secretary of State, Condoleezza Rice calling it "an extraordinary step forward." Most political leaders abandoning diplomatic niceties have been extravagant in their praise of this globally-scrutinized election. It seems that suddenly the whole world has regained its faith in the vitality of American democracy. However, this mood may be short-lived, on account of the looming national and international challenges for the US.

First, electoral politics have different dynamics with political leaders going to any extent to lure voters. They cash in on the sentiments of the electorate dissatisfied with the existing regime, which is precisely what Obama did to achieve electoral success. Obama has a limited capacity to act in the short-term, given his limited experience in politics and in holding executive office. His immediate test would be to addresses the pent-up demand within the Democrats who are eager to use the power of the national purse. Therefore, doubts remain whether he will be able to use his political mandate to act boldly, since he has to eschew the campaign rhetoric and shift to the halls of governance.

Second, his soaring rhetoric during the election campaign has generated high expectations among voters and they are anticipating a quick delivery of his promises. This brings in the big danger of a letdown. In politics, the campaign is always fought in black and white terms, where political leaders do not mind promising even the moon. However, once in power, these leaders tend to govern in gray. The new challenges of the financial meltdown and growing unemployment are beyond the capacity of any one man, or any one political party to address. Therefore, assuming office amidst crisis does not guarantee success, but it can certainly be sought. Franklin D Roosevelt evolved a new political philosophy in the form of 'The New Deal' after the Depression and Obama need to do something along similar lines.

Third, there are broader issues on the agenda like climate change, reducing greenhouse gases, reducing dependence on foreign oil, outsourcing, new taxes, balancing the national budget, clean energy technologies, agricultural subsidies, to name a few. All these sensitive issues require immediate attention by the President; apart from the US, the world too, is awaiting his lead. Obama's handling of these issues will redefine his political persona and will be the barometer of his success in meeting the aspirations of American citizens in particular, and world citizens in general.

Fourth, the financial crisis arises from the play of invisible market forces, and has made it imperative for him to articulate a new politics for the common good. He will have to reinvent the government as an instrument of the common good, to regulate markets and protect citizens from the risk of unemployment and ill health. While doing so he has to be cautious in not pursuing the traditional version of the common good that simply means the sum total of all interest groups fighting for their share. The unfettered market does not serve the public good and hence the need for redesigned state intervention.

Fifth, American citizens are reeling under the economic and human cost of war in Iraq and Afghanistan. It has proved equally costly for innocent civilians in Iraq and Afghanistan due to collateral damage. How Obama will resolve both these wars remains a mystery. This is because he cannot afford to withdraw the forces and leave the local populations in the lurch. This would tarnish the US image in the comity of nations and would be considered a great disservice to the cause of humanity while also revealing the limits of American power.

Sixth, the speech of Russian President, Dmitri Medvedev, in the immediate aftermath of the election results, that he was planning to station missiles near Poland to counter the US anti-missile system to be based there, has posed a new challenge. Obama's response to such anti-American rhetoric has yet to be articulated. These developments have the potential to redefine the world order and US-Russian relations.

To conclude, the future is a tortuous trek, which Obama needs to undertake cautiously and in a bipartisan manner. His 'New Politics' of engaging Republicans and acting as the coordinator is yet to emerge. The real test of Obama would arise when the reconstruction begins.