This paper analyses vertical articulation of public investment model, deployed under Structural Adjustment Program during the 1990s in Argentinian north-east. Proposed analysis considerates theoretical debate about modern development theories applied therefore experienced by international finance agencies like World Bank, and its associated donors. It is argued that under the current lending trends it is unlikely to reach a sustainable and democratic development. Conversely, these policies not only increased the country s debt, it also exacerbated the gap between planning agenda and social expectation and demands. It concludes by exploring the urgent need to develop a horizontal articulation of urban management as reliable tool to encourage democratic local development.