Judgment, Compassion, and Kindness
Hashem (God) has many names in the Bible, each representing a distinct divine attribute.
The difference between two of the divine names is mentioned in this verse. The word Hashem (Lord) means rachamim (mercy, kindness forgiveness). The word Elokim (God) means the God of judgement.
At first, judgement seems harsh, cruel, and punishing. But when we put the two names of God together, Hashem Hu Ha-Elokim we acknowledge that in His judgement there will also be compassion and kindness.
Sanctifying God's Name
This verse represents a great sanctification of Hashem's (God's) name. Though King Shlomo (Solomon) was the wealthiest, most powerful king of all time, this was not the reason why he was sought out by the entire world.
Rather, everyone wished to be in his presence because of the great wisdom Hashem had given him. This demonstrates that Israel is unlike all other kingdoms; it is a holy nation.
When Jewish leaders represent the highest levels of ethics and wisdom, they sanctify God's name among all people of the world.
Firing Up The Nations
This famous phrase captures the mission statement of the People of Israel. For most of Jewish history, the role of "light unto the nations" has been understood primarily as a private call to have a positive influence on the world by living an ethical life and setting a personal example of righteous behavior.
Rarely was anyone on the outside interested in what the Jews as a nation had to say, and so the concept of ohr goyim (light unto the nations) was an ideal that individual Jews strived for.
However, Yeshayahu (Isaiah) called for so much more. The "light" in his stirring description is capable of opening the eyes of the blind and leading the imprisoned out of darkness. The establishment of the State of Israel and its role on the international stage calls for a transformation of the "light unto the nations" metaphor from a passive, individual candle, to a powerful blaze, firing up the nations and igniting the world with righteousness.