The major objective of this paper is to determine the impact of inappropriate planning on economic function and further to explain the link between oil rent and rural development. The research method is based on descriptive-analytical one. However, this analysis is geared toward combination of institutionalized pattern with emphasis on dependency upon marched path and political economy rent. This study suggests that the failure of our policy constitute the major core of the problem. This similarly exemplified itself in different historic periods with or without dependency upon oil. This paper further tries to propose some

suggestions and recommendations in order to get out of this political failure phenomena.