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This paper outlines the basic characteristics of the rational and collaborative model of urban planning. The situation in which urban planning in Serbia has found itself in has been analyzed. In the circumstances of the undeveloped fundamental institutions of the democratic and market-oriented society, the lack of the necessary rationality and simulation of the basic models of planning is perceived in the planning practice in Serbia. The request to explore aspects of a wider reform agenda of planning practice has been highlighted. The transformation of planning comprises a fundamental reorganization of the institutions, development of the analytical framework, change in the planning approach, i.e. the change of the planning culture. The basic position in the paper is that those changes can be realized only by building and pinpointing the system in which planning is performed, namely by defining the institutions of the socio-economic framework: the market, the private ownership and its protection, as well as the rule of law.
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