A dry but solid account of prospects for Philippine development which does not inspire great optimism. Although the average annual increase in per capita income since independence (1946) has been a healthy three percent, there is no basis for self-sustained, long-term development. Distribution of growth benefits has been very unequal; the rate of growth cannot be maintained without difficult changes in the pattern; and the type of industrialization has not been conducive to providing broad-based employment opportunities needed in a labor surplus economy. As of 1971, about one-half of all rural families in this largely agrarian society had incomes below subsistence level. Meanwhile, the pace of much-needed land reform, off to a good start in 1972, has slowed.