ABSTRACT
This chapter focuses on two constellations in the setting of which Southeast Asia has been developing – the constellation with Northeast Asia in the lead and the contemporary constellation that is increasingly shaped by China-centric value chains. This research follows the twin tracks of global and regional political economy and how domestic institutions interact with shifting ecosystems. The chapter argues that the era of the Miracle Eight has passed because manufacturing has become increasingly competitive worldwide and options for manufacturing export-led growth and industrial upgrading have narrowed. It examines how changing geoeconomic constellations have influenced developments in Southeast Asia. The chapter also argues that economic complementarities increasingly include China-centric value networks in East Asia as part of 'globalization with Chinese characteristics'. It asks what would be the implications of this development for different tiers of SEAs. The chapter looks at the bright side of SEA and under which conditions it may deliver.
