This report analyzes the state of changes of environment and natural resources that took place over the last hundred years. Time series data on land, forest, biodiversirv, water, marine and atmosphere revealed the alarming rate of deterioration of environment at the local, subregional and regional levels. The cause-effect relationships for the changes are reviewed in depth. It also highlights the various driving forces that brought about the transformation in the region. The remarkable developments in economic and social conditions, as well as rapid urbanization have enabled to raise the living standards of people, but it has embarked enormous pressure on the natural resources and environment in the region. This report assesses the effectiveness of current policy initiatives to address the emerging environmental issues at the local, subregional and regional levels.