With this I agree... I wrote about this problem in some (probably excessive) detail here:
http://muse.jhu.edu/login?uri=/journ...5.4rogers.html
It's possibly even more true in the urban areas, simply because there's more at stake: the urban areas are where the power and the money are. The twisting of the law is slightly less obvious, because it's less likely to involve overt violence, but it's no less present.
It works both ways: guns can get you money, but money buys guns, and the loyalty (no matter how nominal and transient) of those who carry guns. Much of the fighting in Mindanao (and elsewhere in the Philippines) has more to do with money than with ideology or political goals.
It's certainly most visible in Muslim Mindanao, though again I'd say the same syndrome is every bit as present, though more quietly manifested, in many other areas. I'm not sure that there's anywhere in the country right now that I'd call a "communist area", but the NPA have certainly (and unsurprisingly) been best received and established their most durable presence in areas dominated by the essentially feudal old-school political dynasties.
I would agree that real progress cannot be made in the Philippines until local politicians, the police, and the justice system are brought within the rule of law. I'd also have to add the AFP to that list, because corruption and illicit business interests among AFP personnel, often in cooperation with local politicians and businessmen, are a major part of the problem.
There's an old Manila joke that sort of sums it up...
A Berliner, a New Yorker, and a Manilan were discussing police efficiency in their cities.
The Berliner declared "in my city, when a crime is committed, the police are there within five minutes.
The New Yorker snapped back "that's nothing... in my city, when a crime is committed the police are on the scene in less than three minutes".
The Manilan just smiled: "in MY city, when a crime is committed... the police are already there."
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