In recent decades, development has become a central theme in urban and regional policymaking, often pursued with the intention of improving the quality of life, reducing spatial inequalities, and strengthening infrastructure in underprivileged areas. However, the outcomes of many development programs—particularly in peripheral settlements—highlight a significant gap between stated goals and actual results. This study critically examines the conceptual structure and internal logic of development planning in Iran, focusing on Camp B in Bandar Imam Khomeini as a case that reflects these dynamics. This study employed a qualitative, interpretive case study approach and combined documentary analysis of official development programs with field observations in Camp B to identify several structural and conceptual weaknesses in current development strategies including lack of strategic coherence, limited flexibility, exclusion of community participation, absence of spatial and social justice, weak institutional and policy frameworks, overemphasis on economic growth, and insufficient attention to human services and basic infrastructure. These issues were then compared with the lived and social realities of the settlement. Findings indicate that the ongoing crises in Camp B are not merely the result of poor implementation but rather reflect the inherent flaws embedded in the logic of development programs themselves. In other words, the shortcomings in this case illustrate a broader structural problem that permeates development planning. The study argues that genuine and sustainable development requires a rethinking of these foundations, moving beyond top-down approaches toward context-based, participatory, and justice-oriented planning.