With particular reference to the Philippines, this paper outlines some ongoing efforts on policy and institutional reforms and issues related to initiating sustainable management of rain forests as an alternative to swidden cultivation. The paper: 1) examines the impact of deforestation by smallscale cultivators; 2) gives a detailed diagnosis of the problems; 3) enumerates ongoing efforts in policy and institutional reforms supported by the Asian Development Bank (ADB) to ensure broad-based community participation in production alternatives to slash and burn agriculture on forest lands; 4) provides detailed documentation of projects supported by the ADB; and 5) reviews the issues involved. -from Author