The present report concerns the ILO’s response to the Asian financial crisis of 1997-1998, focusing on the role played by the ILO in the recovery in Indonesia and Thailand. The report highlights several important lessons, such as the need for an immediate response; the importance of building on existing programmes, even if new ones are being developed based on wide consultation; and the crucial role of preparedness of countries to deal with inevitable periodic socio-economic ups- and downturns.