No, judicial reform is not a sign that a country's government has failed, because it is a sign that the government is able to make peaceful changes. A government that can see it could do something better, and chooses to do that thing, is a good government, because they can respond to the people.
Judicial reform can simply be a sign that a country is progressing, times have changed, and that it is time for the system to be revamped in order to flow more smoothly with the modern world. If you notice, the judicial system feels old and acts old. In britain, they still have magistrages--this is insane.
I do not believe judicial reform is a sign that a country's government has failed. I think judicial reform is the sign of something not working appropriately and that problem being fixed. If anything, I think it signals the fact that the government is still working. Otherwise issues wouldn't be fixed.
I think Judicial Reform is a sign that the country's Government is listening to it's citizens and is fixing the problems that people have complained about, I think Judicial Reform is a sign that the Government is functioning for the people and is stronger then ever the opposite of failure.
If judicial reform is implemented, then the first step has already been taken to correct a faltering government and hold it to the same standards that the people would like to hold it to, if they are to respect for it. The important word here is reform - if there is not reform, there is a collapse.