A policy management system implements a programmable policy-based approach for managing network elements in a telecommunication network. The policy management system includes one or more policy proxies associated with the network elements and a central policy processing point in communication with the policy proxies. The policy proxies are configured to notify the policy processing point of events occurring in the network. The policy processing point is run-time programmable with one or more policies to process such events and to notify one or more of the policy proxies of actions to be taken in response thereto. The policy proxies implement these actions at the network elements they represent.