This paper looks at the effects of the global economic crisis on the developing economies of Asia, their policy response to shocks and their medium-term growth prospects. The global crisis has uncovered systemic and structural weaknesses and vulnerabilities in certain areas in the economies examined here and strengths in others. In almost all countries the financial sector has shown a significant degree of resilience to shocks from the global crisis. However, a common feature of the countries examined is their high degree of susceptibility to financial boom-bust cycles and gyrations in equity, property and currency markets. This crisis has shown the risks of full integration with markets in global financial centres and the need to adopt a strategic approach to financial opening and integration. The crisis has also uncovered a high degree of vulnerability of the developing economies of East Asia to trade shocks, raising the question of whether the end of export-led growth has been reached. With unfavorable global economic conditions likely to persist, the paper underscores the need to reduce the dependence of the region on markets in advanced economies and to rebalance domestic and external sources of growth.