Hon Speaker, the response to the question is that policy measures to shield South Africa from global economic instability have to a large extent already become embedded in the fabric of our economic policy-making. Stable and transparent microeconomic policies and robust institutions have made the South African economy more resilient to shocks and have promoted economic stability.
Firstly, inflation targeting has ensured that inflation remains low and stable, which benefits households in terms of purchasing power. Inflation, which averaged 14% in the decade prior to 1994, fell to an average of 5,5% between 2003 and 2013.
Secondly, prudent fiscal policy has helped steer the economy through one of the largest financial crises in 70 years and has created employment opportunities whilst creating space for increased spending on important social priorities and investment.
Thirdly, the flexible exchange rate serves as a shock absorber because it reduces external shocks, supporting exports growth and reducing the current account deficit. The rand is an important shock absorber for the economy, and is backed up by a credible monetary policy framework that limits the pass-through from a weaker rand to inflation in order to preserve the real value of the currency.
Microeconomic stability prepares the ground for growth, but growth is not guaranteed without the necessary microeconomic reforms that determine whether savings and investment decisions are optimal. Our economy relies on microeconomic reforms to reignite growth and to create jobs. A number of reforms and programmes have helped the economy to withstand turbulence in the global economy.
If I may touch on a few of them, if time permits, interventions that have supported our domestic growth include the economic competitiveness and support package in 2011 with the express intention of countering the effects of the global economic slowdown in local companies. This programme initially had an allocation of R25 billion. Over the next three years, we are looking at R15,2 billion.
We also have incentives to boost manufacturing which have yielded returns where government has adopted a multifaceted approach to broaden the participation in the economy and enhance competitiveness for domestic producers. We also have had a number of interventions in the labour market where the Expanded Public Works Programme, EPWP, have been running through all spheres of government to provide productive work. A spin-off of the EPWP is the Community Work Programme, the fastest growing component of expanded public works, as I have said, with a strong focus on generating local economic empowerment. This programme has provided guaranteed part- time employment to more than 175 000 people in 2012-13 alone.
We also have the National Infrastructure Plan, which has been rolled out for capacity expansion in order to address existing capacity constraints, which is a crucial pillar of our economic growth agenda. Capital investment by public enterprises has increased by more than 260% in real terms over the past 10 years. Local government's annual infrastructure expenditure has doubled in real terms since the late 1990's. All told, the public sector has invested in excess of R1 trillion in infrastructure since 2009-10. Medium-term capital expenditure by state-owned companies is projected to reach R381,8 billion investment by a number of ... [Time expired.]