Strong example

Obama stated that it will be the U.S. policy to promote reform across the region and support transitions to democracy.

"That effort begins in Egypt and Tunisia, where the stakes are high," he said, explaining that Tunisia was "at the vanguard of this democratic wave" while Egypt is both a long-standing partner and the Arab world's largest nation.

"Both nations can set a strong example through free and fair elections, a vibrant civil society, accountable and effective democratic institutions, and responsible regional leadership," he said.

He unveiled a set of initiatives in support of the two countries.

-- Asking the World Bank and the International Monetary Fund to present a plan at next week's G8 summit in Paris for what needs to be done to stabilize and modernize the economies of Tunisia and Egypt.

"Together, we must help them recover from the disruptions of their democratic upheaval, and support the governments that will be elected later this year," Obama said. "And we're urging other countries to help Egypt and Tunisia meet its near-term financial needs."

-- Relieving Egypt of up to 1 billion U.S. dollars in debt, and working with U.S. partners to invest these resources to foster growth and entrepreneurship.

"We will help Egypt regain access to markets by guaranteeing 1 billion dollars in borrowing that is needed to finance infrastructure and job creation," Obama said. "And we will help newly democratic governments recover assets that were stolen."

-- Working with U.S. Congress to create Enterprise Funds to invest in Tunisia and Egypt, modeled on funds that supported the transitions in Eastern Europe after the fall of the Berlin Wall.

Obama said that the U.S. Overseas Private Investment Corporation will soon launch a 2-billion-dollar facility to support private investment across the region. "And we will work with the allies to refocus the European Bank for Reconstruction and Development so that it provides the same support for democratic transitions and economic modernization in the Middle East and North Africa as it has in Europe," he added.

-- Launching a comprehensive Trade and Investment Partnership Initiative in the Middle East and North Africa.

"If you take out oil exports, this entire region of over 400 million people exports roughly the same amount as Switzerland," Obama explained. "So we will work with the EU to facilitate more trade within the region, build on existing agreements to promote integration with U.S. and European markets, and open the door for those countries who adopt high standards of reform and trade liberalization to construct a regional trade arrangement."

As to other countries still engulfed in unrest, Obama took a case-by-case attitude.

He described Libya as "the most extreme example" in answering calls for change by violence, saying that Libyan leader Muammar Gaddafi will "inevitably" leave or is forced from power.

He challenged Syrian President Bashar al-Assad to make a choice -- lead a transition to democracy or get out of the way. A day earlier, Obama ordered sanctions against al-Assad and his six top aides.

As to Yemeni President Ali Saleh, who the United States has relied on in the fight against al-Qaida, Obama urged him to follow through on his commitment to transfer power.

To Bahrain, where the U.S. Navy 5th Fleet is based, Obama demanded the government create the conditions for dialogue with the opposition.

"In the months ahead, America must use all our influence to encourage reform in the region," Obama asserted. "Even as we acknowledge that each country is different, we need to speak honestly about the principles that we believe in, with friend and foe alike."

"Our message is simple: If you take the risks that reform entails, you will have the full support of the United States," he added.