Since the outbreak of the 1997 Asian crisis, the importance of reform has been reemphasized. As part of conditionality of the financial bailout, the IMF imposed severe economic reform requirement on the borrowing countries. The economic reform includes banking reform, corporate reform, labor reform, and public sector reform. While the importance of reform is widely acknowledged, the performance of reform is not satisfactory. In particular, the reforms in less developed countries are often quoted as being unsuccessful. This paper develops a game-theoretic model to explain why reform tends to fail rather than succeed. It also reveals that reform performance depends upon the interactions among political parties, government bureaucrats, citizen voters, and lobbyists.