Since 1973 the world economy has been characterized by a relatively slow pace of expansion in output and trade, accompanied by high unemployment and strong inflationary pressures (stagflation). With this has gone an emerging energy problem, monetary instability, a growing pressure for protectionism, a declining demand for certain products and a change in the pattern of the international movement of labour and capital. In this article, the consequences of these international features for the Flemish economy are analysed. From this analysis, it has become clear that the international economic crisis has revealed more clearly the structural problems of the Flemish economy, especially in the field of economic growth, competitiveness, pattern of investments and industrial structure. This has resulted in a very high unemployment rate, which moreover will probably not disappear with an eventual improvement of theinternational economic situation: whereas the Flemish economy has gained largely from the oil based industrial expansion, it is not participating at present in the socalled third, by sofisticated technology led industrial revolution. Consequently, more and more labour-intensive activities are taken over by less developed countries, whereas some of the capital-intensive industrial sectors have to cope with a growing technological gap. To stem this unfavourable development, there is an urgent need for a powerful and planned structural policy, which must as a matter of priority force back the unemployment rate to an acceptable level. In this context, regionalisation might be a powerful instrument, as it offers to the regions the possibility of creating own solutions for their own problems.