The following is an abridged version of Mayor Mufi Hannemann's inaugural address, given during a public celebration Friday at Hawaii Theatre. The mayor was formally sworn in for his second term earlier in the day at Kapolei Hale.

As we vowed when we first took office, we have put our financial house in order and are living within our means. We are one of the safest big cities in the entire nation. We're rebuilding an aging sewer infrastructure. We're repaving our roads. We're cleaning up our parks and improving our public facilities.

But these are difficult times, like no other we've seen in recent memory. The meltdown in the financial industry has been a contagion that has spread across the globe and infected nations, and just about every corner of the global economy. There's so much gloom and doom that there seems to be a feeling of defeatism, a loss of hope that I believe is even more harmful than the condition of our economy.

I ask you: Is this the spirit that made our nation the envy of the world? Is this the attitude that will keep us strong and united? Is this the inspiration that propelled our Polynesian forefathers to navigate and settle the mighty Pacific? I say, no.

The economy

Mayors - not only in Hawaii, but across the nation - stand ready to collaborate with our co-leaders in government, business and labor to implement our common economic stimulus goals and pursue other solutions to strengthen our communities.

Our efforts, which include nearly a billion dollars in city capital improvements, plus the U.S. Conference of Mayors' package submitted to President-elect Barack Obama and Congress, will help to restart a stalled economy. But public infrastructure projects alone will not be enough.

I have not been idle while the economy has slumped. My work with the U.S. Conference of Mayors, plus meetings with Korean and American tourism officials, helped lead to the expansion of federal visa waivers to grant visitors from friendly nations easier access to our nation. I'm co-chairing with Chicago Mayor Richard Daley a public-private task force to bring the 2016 Olympics to this country, which, if successful, will undoubtedly generate travel to Hawaii.

Locally, despite these challenging economic times, the city was successful in encouraging Donald Trump and the Disney Corporation to invest in major resort projects in Waikiki and Ko Olina, respectively. You can expect my administration to continue these proactive steps to woo private sector investment that will create jobs for our people.

Greatness in Hawaii

Keep in mind that problems are not as important as solutions. And our people have the manao, the talent, the skills, the energy and the creativity to overcome any obstacles or impediments in our way. But we need to believe in ourselves.

I'd like to take you back to the words I shared in my first inaugural address. At the time, I quoted Governor John A. Burns. This man observed in his 1969 state-of-the-state address that the people of Hawaii suffered from a subtle inferiority of spirit that was unwarranted. Sadly, too many of us still feel that, even as we enter our 50th anniversary of statehood.

I say, we need not take a back seat to anyone. And, as the nation is beginning to appreciate, excellence and greatness emanate from our shores.

In a few days, Barack Obama, a man born in this very city, whose parents reflected the diversity of our unique island culture, will become the 44th president of the United States, the most powerful and influential leader in the world.

Our senior senator, Daniel Inouye, has become the chairman of the Senate Appropriations Committee. His colleague, Daniel Akaka, is heading the Veterans Affairs Committee. Two sons of Hawaii, out of only a hundred members, lead two of the top committees in the Senate.

  On the local scene, you recall with great pride the success of the Ewa Beach/West Oahu Little Leaguers in winning the World Series crown in 2006 and the Waipio Little League duplicating that amazing feat just months ago. In the Summer Olympic Games in Beijing, Bryan Clay, a Castle High graduate, won the gold medal in the decathlon and with it the title of “;world's greatest athlete.”; Manti Teo, an Eagle Scout and outstanding student-athlete from Punahou School, is the Sporting News High School Athlete of the Year and regarded as one of the top football prospects by college coaches across the nation.

A team of Farrington High School students won one of two $75,000 grand prizes in the nationwide Lexus Environmental Challenge, for their global education efforts in renewable energy.

Rose Nakamura, who founded Project Dana 20 years ago and was an honoree of the city's inaugural Forever Young Award in 2008, was heralded by the AARP as one of the nation's “;Ten Who Inspire.”;

Richard Maruya of Kaneohe received federal approval for a new refrigerant that he spent 15 years developing in his garage. The Environmental Protection Agency also recognized Mr. Maruya for his innovative research, which will make refrigerators and air-conditioners more efficient and environment-friendly.

These awards and accolades are just a few of the ways people from Hawaii nei showed not only that we can hold our own nationally, we can and we do excel.

  Hawaii is a place of greatness; we have much to be proud of. My friends, we can do anything. That's why the economic challenges before us, no matter how daunting and difficult, should not discourage or defeat us. One of my maxims of leadership is, “;Never base decisions on fear.”;

It is in this spirit that I ask all the people of this city to come together ... to work together ... to dream together, of a better future for Honolulu. It is in this spirit, as the mayor of the 12th largest city in the country, that I approach my second term in office: Ready to listen. Ready to collaborate. Ready to lead.