In recent decades, the concept of development has become one of the main pillars of urban and regional policymaking, often pursued with the aim of improving quality of life, reducing spatial inequalities, and enhancing infrastructure in underprivileged areas. However, the outcomes of development programs in many regions—particularly in marginalized settlements—reveal a deep gap between declared objectives and actual consequences. This study adopts a critical approach to analyze the conceptual structure and internal logic of development programs in Iran, using the lived experience of the Camp B neighborhood in Bandar Imam Khomeini as a reflection of these structures. Employing a qualitative, interpretive case study methodology, the research draws on a combination of document analysis of official development plans and field observations in Camp B. In the first stage, a set of components indicating structural and conceptual weaknesses in the programs were identified—including lack of strategic coherence, inflexibility, lack of social participation, absence of spatial and social justice, institutional and policy shortcomings, excessive economism, and insufficient attention to human services and basic infrastructure. These components were then examined in relation to the lived and social conditions of the neighborhood. The findings suggest that the persistent crises in Camp B are not merely the result of implementation failures but are direct reflections of the very elements embedded in the essence and logic of the development programs themselves. In fact, the study reveals that the failure observed in this case is a manifestation of a broader systemic pattern fueled by the internal structure of the programs. Therefore, only through a fundamental revision of conceptual foundations—and a shift from top-down approaches toward context-based, participatory, and justice-oriented planning—can one hope for humane and sustainable development.