Archbishop Desmond Tutu says the election of Barack Obama as President of the United States – "a president of colour" – has given gave hope to the world.

Archbishop Tutu, who won the Nobel Peace Prize for his work against South Africa's system of apartheid, said the choice of the first African-American president was "a miracle." Racism, he added, "was running rampant in so many places. A black man was dragged behind a truck. And you elect a man of colour! You are bearers of hope, not just here, not just for people of colour, but for hundreds of thousands around the world. People are dancing in the streets."

He also applauded the Diocese of Maryland for electing in March its first African American bishop, Eugene T. Sutton. "What the Diocese of Maryland did yesterday, the United States of America did today."

Archbishop Tutu was speaking at an event called "Healing and Hope for Our Times," on November 22. It was part of a fundraiser held at Old St Paul’s Church for the Tutu Institute for Prayer and Pilgrimage in Alexandria, Va., and the Maryland Bishop’s Initiative on Reconciliation.

The Tutu Institute is headed by the Rev Mpho A. Tutu, the archbishop’s daughter. Bishop Sutton's initiative will focus on education for poor city children, environmental justice and racial reconciliation.

In his remarks, Archbishop Tutu touched on the "economic meltdown," asking "Where does the money go?" He also alluded to global warming, saying "Our sin leads to ecological disaster." He added: "With a small part of the defence budget, children everywhere would have enough to eat, fresh water to drink, a decent home and be able to live happy together.

"Our life now is all division. Everything is slipping away. All are crying for reconciliation and atonement. But God will never forget us. None of us is an afterthought. God has a dream, one of reconciliation of all as beloved children of God."

The archbishop added, "You are precious to God. If only you would believe it. God says you are the best thing I ever created with a love that can never change. I know you by name. I love you." He urged his listeners to see that all people are "our brothers and sisters," and challenged them to "go and tell others."

Bishop Sutton announced the creation of the diocese's own Truth and Reconciliation Commission, "telling the truth about where we have been." He also intends to work for environmental justice, to help "heal the planet of the sickness caused by human action," and to work for better education for "those friends of Jesus, the children, particularly in the city where the vast majority of poor and African American children do not graduate from high school."

Young drummers and dancers from the city accompanied the arrival and departure of the bishops.

Val Hymes is a member of St James' Church, Lothian, in the Diocese of Maryland.