I have to agree with pigsinspace on this one........
In a country where there is no safety net of a welfare state, if you dont earn, you dont eat. End of story ! To the majority of Filipinos we are all wealthy beyond their dreams, so why is this a problem ? Its the same in most arab or oriental countries.....thinking about it, its like it here too !!
You KNOW that just about everyone is going to try it on, or get something for nothing, so why worry ? For me its just part of the experience, and the onus is on you not to allow them to get away with it. You will never, ever, for example, get a taxi fare for the same as a local, but its good fun talking it down. I have never found it necassary to become unpleasant, but I have ALWAYS got the fare down a lot, and lets face it, its still a bargain by our standards here ! In any non western country you are expected to barter, and you would be thought strange if you don't.
You just have to learn to smile and walk away, because there is always plenty of choice. I dont recall being blatantly ripped off, or even being threatened. Although it is sometimes uncomfortable in unusual situations. Maybe I have just been lucky ? I have even walked through Santa Cruz in Manila at night with no trouble, but maybe its because I dont walk around looking like a tourist, IE sandals with white socks pulled up, The biggest Addibok trainers you can find, watches, jewellery, shorts, three cameras, a shirt that even a Canadian tourist wouldnt be seen dead in etc etc etc.
As for honesty, if you lost your wallet here in this country, do you really expect to get it back ? Nice if you do, but unlikely, and its just the same there. Out there I often walk around with an old wallet sticking out of my back pocket, but up till now its never been lifted.
Corruption ? Well, we are all grown ups, we know it goes on, and there is nothing that can be done about it. Its annoying I know, but all these little extras are still cheap by our standards, but I always make a point of telling the culprit that this is why foreigners don't want to come to the country, and why Filipinos will always be poor.
The only thing I dont like about it, is that its too damn hot and sweaty for my liking. Sure there are all the shortcomings, but to me its all part of the fun !