**1. Introduction**

The global dichotomy between the global North and global South is not a mere fiction but a fact that actually plays out in many spheres of life [1]. The current position of many nations in the global South is involuntary, however, the derogatory characteristics of a global South nation can change when there is a sincere, determined resolution by all stakeholders to make the nation functional and efficient. The much needed functional cities in the global South cannot be achieved without deliberate, effective and apt urban planning. A clog in the wheel of progressive change in urbanization trend of these cities is hinged on the unrelenting position of many global South planners who cling to their colonial-master-bequeathed planning approaches without consideration of current realities, with the results that these cities evolve and grow without circumspective direction and proper management of urbanization trends.

In the light of the above scenario, the characterization of global South cities as informal-economy-cities has not only just persisted but is expanding and taking

new dimensions. Consequently, this chapter briefly discusses the trend of planning at different epochs in history; examined urbanization, and its major consequence in global South cities, which is informal economy. It further explores the Neo-liberal thinking and trends, which underpins and sustains the perpetration of informal economy, and details and interrogates the predominance of informal economy in global South cities. The Chapter specifically devotes sections to discuss the relationship between urban planning and informal economy; the need for adjustment in global south urban planning standards to meet current realities, with lessons drawn from successful story of Singapore, a global South city that has become a model for other global South cities, showing that being an *informal-economy-city* is not a permanent status but can be transformed when necessary actions are taken by all stakeholders*.* Finally, the chapter proposes innovative and inclusive urban planning design as the path to economic growth in global South cities.
