1. IntroductionThe topic of International Political Economy is commonly regarded as a branch of the broader field of International Relations. International relations have traditionally focused on addressing issues of war and peace, as well as conflict and cooperation between nation states. A difficulty emerged in the field when it was not possible to provide answers or prescribe workable solutions to issues concerning wealth, poverty and resource distribution in the international system. International economic policy emerged as a response to significant change in current international economic affairs. This essay will show the usefulness and effectiveness of international economic policy in explaining the problems of poverty and wealth.2. Definition of ConceptsThis section will provide brief definitions and descriptions of major concepts that are relevant to this essay and will be used throughout the essay.2.1 IPEA An interdisciplinary social science concerned with examining the complex interactions between markets, states, and societies and how they tensions and conflicts between these arenas influence and reflect conditions external to the state and society (Ballam and Dillman 2014:15).2.2 TheoryTheories are models that explain how the world works. They are often used as analysis tools. Theories emerge at particular times and places offering contextual explanations for their emergence and dominant forces (Denmark 1997:45). 2.3 Globalization This is the process by which the pursuit of liberal economic ideas and policies has led to greater economic growth throughout the world. It connotes growing economic interdependence, difficult-to-determine boundaries, and a spread of Western (USA) culture. 1998:21). The structure of internal state affairs is seen as divided into two. The proletariat and the bourgeoisie. The bourgeoisie are those members of society who own the means of production and essentially the capital in a given society while the proletariat are the workers of the economic system. There is an exploitative relationship between these two classes. For structuralists, the same internal divisions have spread to the international economic system. This is evident in the divide between developed and developing countries. It therefore follows that if states act to preserve and promote the interests of capital holders, at the international level, the trading system will also preserve and promote the interests of developed countries (REF).