Now, al Qaeda's on the run. Afghanistan is no longer a base of operations. The Afghan government is a friendly government that is trying to bring democracy to its people.

There is not going to be any pass for Palestinian leadership in fighting terror.

This is the democratic process at work, What you're seeing with this process is the Iraqi people embracing American-style democracy.

Great leaders never accept the world as it was and always work for the world as it should be

I believe that the Iraqis have an opportunity now, without Saddam Hussein there, to build the first multiconfessional Arab democracy in the Middle East. And that will make for a different kind of Middle East. And these things take time. History has a long arc, not a short one. And there are going to be ups and downs, and it is going to take patience by the United States and by Iraq's neighbors to help the Iraqis to do that. But if they succeed, it'll transform the Middle East, and that's worth doing.

We've got to get back to a sense of an American identity, and that identity is not nationality or religion or ethnicity. It is a particular idea, and that idea is that you should live in liberty and you should be able to pursue happiness.

America cannot do most of what needs to be done alone. You need friends. And we have good friends around the world. We have friends with whom we share values in Europe and Asia - thanks to the forward march of democracy - in Latin America, in Africa, and increasingly in the Middle East.