toward the Western form of free-market capitalism. Under this system, market forces alone would determine the successes and failures of economies, as well as prices for goods and services. Other forces would have little or no effect. Criticisms of ReformThe push to reform Southeast Asia's economic model has met with some resistance, particularly within the region itself. There seems to be a general consensus that some reforms are needed to improve Asia's financial system, but many Asians are very hesitant to support the demands placed upon them by the IMF. They fear that many of these changes will reduce Asia's power to determine its own economic policies and could result in severe financial hardship. Many economists agree with these fears in the short-term. They have stated that that IMF reforms in Asia will mean increased bankruptcies, more bank closures and higher prices for consumer goods. Many say, however, the long-term result will justify these short-lived effects.On the other hand, some analysts also caution about trying to impose Western-style capitalism in Asia. They argue that Southeast Asia's economic model has created several decades of remarkable economic growth. Further, Asia has been able to generate fast economic and industrial growth without experiencing a great wage gap. In addition, unemployment in Asia has been negligible by U.S. standards. Thus, there has not been a need to spend large amounts of public funds to create a system of support for the poor and unemployed. Further concerns are that free-market reforms could jeopardize the successes previously seen in Southeastern Asian countries. Walden Bello, co-author of Dragons in Distress: Asia's Miracle Economies in Crisis, warns "radical free-market reforms may lead not to the transformation of Asian capitalism but to its unraveling." According to Bello, Asia's government-led economic system has been a key ingredient in the region's success. He says that reforms ...
