macroeconomic challenges of high inflation, and a difficult balance of payments situation. The problem was exacerbated by high fuel and food prices on the global market, and adverse weather conditions. These threats have moderated as the government of Ethiopia has taken a number of steps in recent months (e.g., tightening fiscal policy and reducing government’s domestic borrowing, mitigating the impact of high food prices on the poor, reducing public enterprise domestic borrowing, tightening money supply, and gradually depreciating the local currency) to address the macroeconomic problems. The 12-month endof-period inflation rate, after reaching a historical peak of 64 percent in July 2008, fell to -3.7% in July 2009. There was also some improvements in foreign exchange reserves, from barely four weeks of imports cover in October 2008 (US$ 764 million), to the equivalent of seven weeks of imports at the end of June 2009 (US$ 1.5 billion). The situation remains tenuous and continues to receive Government attention. 2.5 Key Strengths and Challenges 2.5.1. Strengths 64. Ethiopia has maintained - uninterrupted - its age-old independence, thereby enjoying a unique position in Africa. As the oldest independent African state, Ethiopia has disproved the colonial contention that African’s cannot rule themselves. It remains a symbol of the indomitable spirit of African resistance against foreign domination. Its geopolitical location, coupled with the valour of its people, has contributed to the survival of independence. As a result of not being colonised, the country has some unique attributes that can be harnessed for development. Ethiopia has the continent’s only ancient written language with its own alphabet. The country also has its own calendar, based on the Coptic calendar, roughly eight years behind the Gregorian calendar. It has the largest number of UNESCO World Heritage Sites (8 out of 78). 65. Ethiopia is also famous for its Olympic gold medallists, rock-hewn churches, and as the place where the coffee bean originated. It is a relatively safe nation and remarkable travel destination. There are not too many African countries that can boast a safety record that matches that of Ethiopia. Ethiopia’s Overall Contemporary and Historic Role in Africa 66. Ethiopia, no doubt, played and continues to play a formidable role in forging and cementing African unity. As the most significant emblem of African freedom in colonial times, the country played a paramount role in bringing Africans to unite under one organisation - the Organisation of African Unity - created in 1963 by 32 independent African states. The country had successfully struggled to host UNECA, established by the UN in 1958, 5 years before the creation of the OAU in 1963. Ethiopia continues to play an important role in African affairs to this day, as shown in Box 1. - 56 -