The imposition of rules and procedures by higher
authorities enables it to achieve a high degree of coordination
and cooperation among government agencies and
between market and public institutions (Peters, 1998). In
particular, those newly industrializing nations in East
Asia that relied on state-led industrialization (modernization)
planning successfully mobilized national resources
in a coherent fashion and bureaucratic governance provided
a useful mechanism under which the state could
coordinate activities of economic actors involved in the
development process. This, of course, comes at the
expense of flexibility and innovation (Lowndes &
Skelcher, 1998) and some mention that the lack of institutional
flexibility and innovation contributed toward the
Asian Financial crisis in the late 1990’s (Radelet et al.,
1997). With an emphasis on the centralized and unified
command of decision making structure, bureaucratic
governance is also referred as vertical or hierarchical
governance forms.