  This review concentrates on progress in lattice QCD during the last two years
and, particularly, its impact on phenomenology. The two main technical
developments have been successful implementations of lattice actions with exact
chiral symmetry, and results from simulations with two light dynamical flavours
which provide quantitative estimates of quenching effects for some quantities.
Results are presented for the hadron spectrum, quark masses, heavy-quark decays
and structure functions. Theoretical progress is encouraging renewed attempts
to compute non-leptonic kaon decays. Although computing power continues to be a
limitation, projects are underway to build multi-teraflops machines over the
next three years, which will be around ten times more cost-effective than those
of today.
