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The Asian economic crisis began during the second half of 1997 with the five Asian countries of Indonesia, Korea, Malaysia, the Philippines and Thailand suffering a sharp decline in the value of their currencies. The crisis spread to Russia and Latin America during 1998, leading to unsettled financial markets around the world. This report examines the origins of the crisis and explores its effects on industry in both the Asian nations and those in the Organisation for Economic Co-operation and Development (OECD) area. The first section deals with the origins of the crisis in terms of structural factors, focusing on the special features of the five Asian nations. Following sections examine the effects on industry and developments both across industries and across regions, policy implications in the five Asian nations and in the OECD area, and the effect of the crisis on China and Korea, and the resulting challenges for policy makers of restructuring industry to successfully respond to market forces.