God’s promise is that in this Bethlehem a child will be born who will rule as king. (He will rule—this is also said in Micah 5:2). He will also act as a shepherd. A shepherd looks after the sheep that was entrusted to him, and he also protects them. He also knows the way to the good grass and fresh water—read Psalm 23, that also says a lot about the shepherd. And the Lord Jesus himself later says: I am the good shepherd (John 10:11).
This king will save God’s people (they shall dwell secure,
it says here and verse 5a reads, he shall be their peace
). After the misery comes the prosperity and a good situation. The great importance of this child is further underlined by the fact that this prophecy says that he will act in the strength of the Lord and in the name of the Lord. Thus, he has the power of God (he is almighty) and therefore whatever he tackles will succeed; no power will hold him back. He also does not act of his own accord, but does everything on behalf of God—he acts as king by the grace of God.
The work of this king ensures that his people is saved from enemies and will dwell secure, but this is not limited only to the people of Israel. Reference is already made here to the worldwide kingdom of God that will be established by Christ.
4 And he shall stand and shepherd his flock in the strength of the LORD, in the majesty of the name of the LORD his God. And they shall dwell secure, for now he shall be great to the ends of the earth.