The Evolution of Development Theory and Tourism - Tourism and Development: Concepts and Issues - page 68

then followed by a 'great compromise' where the 'dialectic of market expan-
sion and political intervention is contained' for a period of time in a stable
equilibrium (Hettne, 2009). The great transformation covered the time from
the mid-19th century to the 1930s followed by the Bretton Woods agreement
in 1944, setting out the framework for a 'great compromise' (Hettne, 2010a).
The new great transformation is often understood to cover the 1944 'com-
promise of embedded liberalism', with 'globalisation as the establishment of
a market on a global scale from 1980, and the critical counter-movements
searching for development alternatives in the new millennium' (Hettne,
2009). The process of globalisation at the centre of the new great transforma-
tion followed the Washington Consensus and structural adjustments; how-
ever, there has been disrupting social consequences of deterritorialisation
from market-led globalisation, which has generated 'political counter-forces
to halt or modify globalisation to guarantee territorial governance, sustain-
ability, cultural diversity and human security' (Hettne, 2010b: 2). Problems
began emerging with globalisation in the 1990s and faced waves of protests
of anti-globalism as the problem of failed states became widespread. It was
the financial crisis of 2008 that was the major crisis that was the catalyst for
discursive change. The global financial crisis coincided with 'climate change,
conflicts over resources, a threatening “global civil war” and known and
unknown pandemics' and it was clear that these complex events could not
be solved by the global market (Hettne, 2010b: 2). After the start of the 2008
financial crisis, which is still being felt today, the 'new signs of discursive
struggle and paradigmatic change abound' (Hettne, 2010b: 2), leading to the
global development paradigm.
Global development, as defined by Hettne (2009), is an improvement in
the quality of international relations and global governance through the cre-
ation of new supranational political institutions that are still to be built.
Global development is a comprehensive policy in areas of trade and economic
cooperation, development cooperation, foreign and security policy that has
a focus on conflict management and environmental policy focusing on bio-
diversity and climate change (Hettne, 2009, 2010b). The achievement of
global development incorporates intercultural dialogue, more symmetric
power structures, strengthening of global welfare as done, for example,
through multilateral global governance, respect for international law and
provision of global public goods (Hettne as cited by Knutsson, 2009).
Realising the relative newness of all of this, Hettne (2009, 2010b) recognises
that, from a global development perspective, there is a major governance gap
and that while economics is global, politics is largely national. There is a call
for a new 'great compromise' (referring to Polanyi) and the development of a
truly global compact providing the framework for global development
(Hettne 2009, 2010b). To promote global development, Hettne (2009) states
that instead of cultural homogenisation and structural polarisation, there
needs to be an 'inter-civilizational dialogue on the level of macro regions or