The attitude towards development it has is very much like China - everything is controlled and all land is owned by the government, and the government's job is to manage zoning, roads, schools, education, in order to make people happy. Nobody actually has any property rights - even trees don't grow without government planting efforts. Farmers can't choose their own crops.
This is actually really different than what happens in the real world. Really, if a community doesn't have a school, people get together and start one. Small civic organizations evolve into permanent buildings, training schools, etc. Pickup sports leagues evolve into organizations that commission their own stadiums.
If there is no fire department, a volunteer one starts. People build churches, or start them at home, whenever they feel the need. But in simcity world, everything good comes from the government.
I love simcity, but I do think it's weird that there isn't a mode where you can just let people build whatever they want. I love the built-in, realistic needs people in it have - but where are the entrepreneurs who will actually start a society, or borrow money to build a building on their own? Where are the rebels who start a revolution if the government doesn't meet their needs?