Barack Obama's victory in last night's US Presidential election is rightly being celebrated not only in the US but in Bermuda and around the world.

For people of African descent, this is an extraordinary moment, a triumph of hope over cynicism. That perhaps is the most "transforming" factor in this election.

Again, the United States, regardless of its flaws, has shown that if an individual, in this case one born of a black Kenyan father and a white American mother, is sufficiently bright and dedicated, he or she can accomplish literally anything.

The election victory, in a country that has had its share of racial tension and legal segregation, is something to be celebrated for that alone.

At the very least, black parents in the US and elsewhere can tell their children "you can be whatever you want to be" and "go wherever your talents and abilities can take you". President-elect Obama is the living proof of that.

To a great extent, he symbolises a new phase in the "big conversation" about race.

He has spent a great deal of time exploring what his identity means and has come to a point where he can open a new dialogue and new way on race relations. As New York Times columnist Frank Rich put it so well yesterday, President-elect Obama does not transcend race. But he has found new and more open ways of talking about it.

What makes Sen. Obama's triumph even more remarkable is not just that he won this election, but how he did so.

He was for the most part measured and thoughtful. While he did not entirely eschew negative advertising, he succeeded in rising above the nasty and partisan attacks thrown at him by the Republicans and the far right.

By not falling for the traps and by refusing to allow himself to be pigeon-holed, he galvanised millions of people to support his campaign, and continued to give people hope at a time when the world is facing economic challenges not seen in generations.

However, he is practical too. It is a well known axiom (and one used by primary rival Sen. Hillary Clinton) that you campaign in poetry and govern in prose. Sen. Obama in his highly organised campaign has shown he knows how to write prose as well as poetry.

For Bermuda, as it grapples with its own racial legacy, there are lessons here. President Obama gives us a way forward that acknowledges the past, but is not trapped in it.

He has shown that campaigns based on hope and idealism, not cynicism, identity politics, character attacks and distortion, can succeed. But Bermuda politicians should note that this only worked for Sen. Obama because he was perceived as genuine. Voters will see through those who talk the talk without walking the walk, as they did with Sen. John McCain's clumsy effort to attract women voters through the selection of Sarah Palin as his running mate.

In January, President Obama will get down to the hard work of governing.

He will face many challenges as President, not least two unpopular wars and a dismal economy.

For Bermuda, the latter problem poses undeniable risks.

Sen. Obama is a leading critic of so-called tax havens, and given the financial position of the US Government, will be keen to find tax revenue wherever he can.

Offshore domiciles are an easy target and ending "tax haven abuse" carries almost no political risk at all.

It is up to the Bermuda Government and the corporate sector to make the case that far from being a drain on the US economy and the US Government revenue, that it is a critical part of what is left of the global financial system and a market whose success is critical to the US economic recovery.

President Obama will also face the challenge of high expectations, expectations that are now so high that meeting them will be next to impossible, especially when Congress, even with (or perhaps because of) big Democratic majorities, can tie up even the best politicians (see Clinton: health care).

President-elect Obama needs to be prepared for this, and if his campaign performance is anything to go by, he will be. He needs a clear and achievable programme that he can push quickly through Congress while he has the momentum of the campaign.

Undoubtedly he knows this. As a result, Bermuda needs to be ready to respond quickly too.