The statement came as the Democrat lawmaker responded to a question about whether the U.S. government had failed to adequately engage Iran's government before the election of hard-liner Mahmoud Ahmadinejad in 2005.

Kerry said the Bush administration has failed to adequately address a number of foreign policy issues, speaking during a World Economic Forum panel discussion that also included Iraqi Vice President Adil Abd al-Mahdi and Mohammad Khatami, Ahmadinejad's more moderate predecessor as Iranian president.

"When we walk away from global warming, Kyoto, when we are irresponsibly slow in moving toward AIDS in Africa, when we don't advance and live up to our own rhetoric and standards, we set a terrible message of duplicity and hypocrisy," Kerry said.

"So we have a crisis of confidence in the Middle East — in the world, really. I've never seen our country as isolated, as much as a sort of international pariah for a number of reasons as it is today."

Kerry said the government needs to use diplomacy to improve national security.

"We need to do a better job of protecting our interests, because after all, that's what diplomacy is about," he said. "But you have to do it in a context of the reality, not your lens but the reality of those other cultures and histories."

Kerry criticized what he called the "unfortunate habit" of Americans to see the world "exclusively through an American lens."

He said a new approach could yet bring great benefits to the United States and other countries.

"I think if we did that more forcefully and effectively we could really change the dynamics of the world," Kerry said. "We should be less engaged in this 'neocon' rhetoric of regime change and more involved in building relations and living up to our own values so that people make a different judgment about us."