Summary : The design and conduct of assistance aimed at improving incomes of rural people needs to be informed by the prevailing policy environment. this is especially the case in the Philippines where missions have concluded that the relatively poor agricultural productivity performance reflects aspects of the policy environment including high protection, uncertain land title, costly regulation - including regulation of transport and infrastructure - and weak administration. Such an environment stands to erode prospects for success of agricultural project. Such circumstances create a need for development strategy to help with the general policy environment and to design and conduct individual projects so that they are robust with respect to general policy. To do this, requires an understanding of contemporary policy development and implementation. These matters have been well documented by Philippines based analysts and by external review. This report takes mainstream contemporary analysis to draw out the main conclusions, outstanding issues and remaining gaps. Six main areas of policy weakness emerging from the review are: 1) uncertainties flowing from slow progress with land reform; 2) high protection for rice, corn, sugar and coconut; 3) the web of regulation which has grown to support the high protection and which serves to distribute both the benefits and costs of the protection; 4) the unnecessary raising of transport and other infrastructure service costs by restrictions on competition; 5) environmental degradation and wasteful use of natural resources; and 6) inadequate funding of R&D, extension and training. Linkages between the policy areas are developed. For example, slow land reform makes it difficult for farmers to raise finance and to commit their own resources to long term tree crops which might have a benign impact on land use. High protection of rice and corn might lead to the replacement of tree crops by corn in upland areas not suited