Abstract
It has been suggested that psychotherapy is facing a crisis of confidence, as it is subjected to increasing scrutiny by policy-makers, funding agencies and the general public. This review outlines present knowledge of psychotherapeutic efficacy, examines some of the socio-economic arguments with which the psychotherapy ‘industry’ is involved, and suggests that emerging trends towards eclecticism and specificity in psychotherapy have considerable merit. It is concluded that outcome and process research has so far failed to convince psychotherapy's critics of its essential roles in a comprehensive health-care system. Further, it is clear that cost-containment policies need to be countered by research which provides credible evidence of psychotherapy being both clinically effective and cost effective.