This article delved into two issues namely: the costs of soil erosion in the Philippines and assessment of investment incentives. Dr. Olli Saastamoinen presented the methodology and results of a preliminary assessment of both the on-site and off-site monetary costs of soil erosion and watershed degradation and its implications. Meanwhile Ms. Lea Sumulong presented a study to address the questions of what investment incentives are for and what their economic justification are. The study also identified the ideal form of investment incentives and set the appropriate guidelines and principles for the granting of such.