Barack Obama's Cairo speech this month has been one of the important of his speeches this year. He has tried to set a new tone for US relations with the Islamic world. Of course from a cynical point of view, one could question why any speech on Islamic democracy should be made in Egypt - which is far from being a democracy. The problem is that there is no country in the Arab world which is a democracy!

At least it could be argued that Egypt is the most populous Arab country. Egypt is also interesting because it is undergoing its own Islamic tensions. The country was once famous for its leading brand of socialistic and nationalistic secularism - the days of charismatic President Nasser. But now, four decades on, the country is engulfed in a vicious battle with Islamic extremists. In Nasser's days, Egyptians dressed like westerners and now there is move towards more traditional "Islamic" styles, especially for the women. Egypt is haunted by some of the tensions identified by the US president

The president, after calling for a new US-Islamic beginning based on mutual interest and mutual respect, covered seven issues. This is a very good list of "fault lines" to be sorted out.

1. There is a need to confront violent extremism is all its forms

2. The situation between Israelis, Palestinians and the Arab World (with a clear reaffirmation of the US's support for Israel)

3. The rights and responsibilities of countries with nuclear weapons (with a particular focus on Iran's nuclear ambitions)

4. Democracy (with a recognition that no system of government can or should be imposed by one country on any other - a clear difference between his views and those of President Bush who claimed that the war in Iraq was partly about creating democracy in Iraq)

5. Religious freedom (and a reaffirmation of the need for religious diversity)

6. Women's rights (with the reminder both of the role of women in Islamic society and the fact that some Islamic countries - all outside the Arab world - have already elected women leaders, which is more than can be said for the US or Australia)

7. Economic development and opportunity (and the recognition that education and innovation will be the currency of the 21st century)

One comment to make on the speech is the new style of dealing with the Islamic world. It lacks the hectoring style of the Bush Administration. For example, there is an admission of the US's role in the overthrow of a democratically elected Iranian government half a century ago. Most Americans have long forgotten that CIA coup but it is still fresh in the mind of all Iranians.

Second, the Obama Administration's new style of openness now puts of the onus on Middle Eastern countries to reciprocate. In the much the same way as an arms race can be escalated upwards, a dispute can also be de-escalated by graduated reciprocal steps. The US has made a small gesture - now it is up to the Middle Eastern governments to respond.

A response may well be seen in the Iranian political unrest. Many Iranians - now imbued with the "Yes We Can" mindset - have voted for a more moderate president and they are angry that the ruling elite have hijacked that election. Since the US now has a more moderate leader they would also like to have a moderate one.

Keith Suter