What is the state of the Philippine environment, and what are the links between environment and development in the Philippine setting? In this paper we first review the available data on environmental quality and natural resource degradation in the Philippines. We consider trends over time, and compare the Philippine case with those of its Asian regional neighbors. Second, we present a brief review of theoretical links between environmental quality, resource depletion, and development strategies and outcomes, and consider the Philippine data in light of this theory. Third, we discuss recent economic trends and policy initiatives having a bearing on environment and development, and present some simulation results indicating likely trends in economic and environmental variables under alternative policy regimes. Finally, we ask what past experience and current trends might indicate for the future of the Philippine environment.