On January 20, 2010, American elected President Barack Obama completed a quarter of his four-year term.

In foreign policy terms the President's first year has improved America's image in the world. Domestically, Obama's ambitious reform agenda is progressing but so far its effects have been limited. Overall, facing obstacles at home and abroad, Obama has been forced to adjust his goals and reign in his ambitions.

America's greatest presidents were George Washington who won independence and Abraham Lincoln who abolished slavery. Lincoln is Obama's hero and his ambition is to leave a comparable legacy.

To ensure every American can afford to see a doctor, Obama has pushed healthcare reform. Despite competing priorities – the financial crisis and the Afghanistan and Iraq wars – he has made progress in persuading both parties and houses to reach agreement on the Health Bill.

Although the Health Bill may not live up to expectations, it will help maintain social stability in the country, albeit at the cost of possible economic stagnation further down the line.

Americans elected Obama in the hope he would lead them out of the economic downturn. His management skills will be tested by his ability to stimulate the economy, while strategically his thoughts are concentrated on how to reduce the terrorist threat and withdraw troops from Afghanistan and Iraq. Success or failure on healthcare reform, the economic stimulus plan and withdrawing troops will determine whether he wins a second term.

To respond to the financial crisis, the U.S. sought broad support from the international community and organized the G20 financial summit as a platform to discuss global economic issues. In this, and in strengthening US-China ties, Obama was going with the tide of history, and reflecting the rising status of emerging economies.

Bailouts and debt restructuring have stabilized the US economy but it is still dogged by unemployment, bad housing loans, and a lingering credit crisis. The balance between saving and consumption needs adjusting, and manufacturing is still in the doldrums. In its eagerness to promote domestic industry, the US government has taken protectionist measures that are harmful to international cooperation and the revitalization of the world economy.

Like Bush, Obama would like to repudiate the policies of his predecessor. Obama was anxious to end the wars in Iraq and Afghanistan, but this turned out to be wishful thinking. The wars are like Pandora's Box – easy to open but hard to close. Trapped in Afghanistan, the U.S. spread the flames of war to Pakistan. Since being sworn in Obama has had to eat his words on many occasions and postpone the timetable for withdrawing US troops from Iraq. The recent deployment to Afghanistan accompanied by a schedule for withdrawal reflected the confusion in the administration's strategy.

Strengthening international cooperation through dialogue is part of Obama's New Deal. He visited China in his first year and displayed a sincere wish to enhance cooperation. The White House also scrapped plans for a missile defense shield in central Europe and restarted negotiations with Moscow on cutting strategic nuclear weapons. While seeking dialogue with Iran and North Korea to contain their nuclear development, the Obama administration has also endeavored to improve its relations with Japan, India and the Muslim world. On the multilateral agenda, Obama has proposed a world free of nuclear weapons, and plans a Nuclear Safety and Security Summit for next year. Unlike the unilateral actions of the Bush-administration, Obama took an active part in the UN Climate Summit, in Copenhagen.

Despite Obama's wish for stable US-China relations, he has shown little more sensitivity than his predecessor with regard to the sensitive two "T" (Taiwan and Tibet) issues. The U.S. has asked the North Korea to abandon its nuclear program, but failed to open a dialogue. Its policy on Iran has forced no concessions. In terms of promoting international cooperation, the U.S. is willing to take initiatives but its pursuit of its own interests in the fields of international trade and climate change are unacceptable to many countries.

The Obama administration's foreign policy problems flow from the nation's inherent concept of "putting America first." Obama is steeped in traditional American values and views the world from an American perspective. Although he is well-educated, understands fairness and always behaves humbly, he is unable to shoulder the task of fundamentally changing America, due to his ideology, the constraints under which he works, and his narrow view of America's national interests.

But we must admit America has changed, even importantly, in the short period since he took office. The motives for change are twofold. One is that America's relative and absolute strength is weakening. It cannot cope with complicated world issues on its own and is forced to seek cooperation with other countries. The other is Obama's ideology – a more balanced and rational world outlook than that of his predecessor.

The progress America has made should be encouraged. The world needs an Obama government that can handle world issues peacefully and establish harmonious relations between America and the world.