International political economy is a field in which scientific and applied dimensions along with theoretical problems are fully considered and for this reason, it was divided to various schools. If those who are involved in this field can coordinate these different dimensions, this diversity will be regarded as an advantage for international political economy. This article analyzes the schools of neoliberalism and neo-Marxism on a comparative basis, although it also looks briefly at realism. According to neo-liberal approach, market mechanisms and the principles of liberalism which govern the functioning of economy are transforming it into a global economy by relying upon technological advances resulting from the competition and innovation in free market. The main point advanced by neo-liberalism is that the globalization of economy contributes to increasing prosperity and welfare all over the world including poor countries. In contrast, neo-Marxists believe that the structure governing international economy does not allow any possibility for development in underdeveloped countries. Neo-Marxists such as Andre Gunder Frank, Samir Amin, Cardoso, Falleto and Wallerestein in the 1970 and also Robert Cox (critical theory) presented concepts such as uneven development, unequal exchange and core-periphery relation and tried to explain the structure of capitalism which govern the international economy. Also, the author addresses the critiques made about these two theories and describes recent theoretical discussions made by rationalists and advocates of critical theory as the latest theories advanced in international political economy
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