, an increasing awareness, bordering in some cases on shock, that their economic model was incomplete, or worse, has arguably emerged in the region. as a consequence, many of the leaders of these countries and their economic advisors are endeavoring to move their economies much more rapidly toward the type of economic system that we have in the united states. the imf, whatever one might say about its policy advice in the past, has played an important role in this process, providing advice and incentives that promote sound money and long - term stability. the imf ’ s current approach in asia is fully supportive of the views of those in the west who understand the importance of greater reliance on market forces, reduced government controls, scaling back of government - directed investment, and embracing greater transparency - - the publication of all the data that are relevant to the activities of the central bank, the government, financial institutions, and private companies. it is a reasonable question to ask how long this conversion to embracing market capitalism in all its details will last in countries once temporary imf financial support has come to an end. we are, after all, dealing with sovereign nations with long traditions, not always consonant with market capitalism. but my sense is that there is a growing understanding and appreciation of the benefits of market capitalism as we practice it, and that what is being prescribed in imf - supported programs fosters their own interests. similarly, it is a reasonable question to ask whether the us authorities should not seek greater assurance that the ongoing process of reform in the imf ’ s policies and operations will produce additional concrete results before we agree to augment the imf ’ s resources. i have reason to believe that the management and staff of the imf are committed to a process of change. we face a somewhat more difficult task in convincing the imf ’ s membership as a whole of the need for change. however, i am confident that our leverage in this regard would be reduced if the united states failed to agree promptly to the proposed increases in the imf ’ s resources. accordingly, i continue fully to back the administration ’ s request to augment the financial resources of the imf by approving as quickly as possible us participation in the new arrangements to borrow and an increase in the us quota in the imf. hopefully, neither will turn out to be needed, and no funds will be drawn. although the tendency in recent months toward stabilization in the east asian economies is encouraging, clearly those economies are not out of

and we are in the process of launching an important study on the effects of reforms aimed at ending too big to fail. this evaluation is being led by claudia buch, vice president of the deutsche bundesbank. conclusion this is an important time for the fsb. we are nearing completion of the post - crisis reform agenda, a major accomplishment. with that comes the opportunity to turn our focus to ways in which we can improve the fsb and prepare it for the next phase of its existence. we will work diligently to enhance our transparency and to expand our efforts to reach out to as many stakeholders as possible. we will prepare for the next crisis by making sure that our framework to assess vulnerabilities to financial stability is state of the art and remains so going forward. and, we will work hard to maintain the important reforms in place, ensure they are working as intended, and, where possible, improve them. 4 / 4 bis central bankers'speeches