Paul speaks of the identity that we have because of what Jesus accomplished as a "new creation".
This new creation seems to be both a given reality and something to be grown into.
Jesus had told Nicodemus "unless a man has been born over again he cannot see the kingdom of God." He went on to explain that this meant being born in the spirit.
People have taken various routes in trying to interpret and realize this description. Does that mean that all but a few are foolishly (and perhaps tragically) mistaken?
What is this new creation?
A new world order - Holy Roman Empire?
An individual new me?
A godly North American society?
An extension of God's touch/spirit through us?
What is different after being born again or becoming a new creation?
"I was bad, but now I'm good"?
"I used to be an SOB, but now I'm a sweet little angel"?
"I was a sinner, but now I'm saved"?
"I used to be estranged from God, but now he lets me breathe with him."?
"I use to be bound up in myself, but now I'm free to live with God and others"?
(Remember, being born again may well involve painful, hard labor)
Reconciliation -
That is what Paul says it is all about, not about being good, per se, not about who is in and who is out.
This new life was made possible by Christ and is something remarkably different - a new creation.
Reconciliation comes first to us, and then we naturally become agents of God's reconciling love for creation.