Stonehaven and Lower Deeside Liberal Democrat Mike Sullivan made the claim at Tuesday's meeting of the Kincardine and Mearns area committee.
Members were airing their views on the provisional draft structure plan for Aberdeen City and Shire, which will help determine growth in the area over the next 22 years.
Director of planning policy and environment Christine Gore presented the report to councillors.
She will now deliver their comments to the Infrastructure Services Committee on Tuesday May 8.
Mr Sullivan was frank in his assessment that transport links in the area must be improved to cope with the possibility of 72,000 hopes being built by 2030.
He said: "The integral transport system is pathetic, third world stuff and it is stifling economic growth."
Mearns councillor Tom Fleming was more specific in demanding upgrades be made to dangerous junctions at Laurencekirk.
He said: "We have tried to get local economic development around Laurencekirk but every time an application comes up it is banged on the head by Transport Scotland because the junctions on the A90 there are unsafe. A grade separated junction at Laurencekirk is sorely needed."
Stonehaven councillor Graeme Clark identified improvements to the Brig O'Dee and the creation of a third Don crossing for vehicles as being necessary.
There was a consensus that improved infrastructure needs to be put in place before new houses are built.
Mearns member George Carr revealed members of the public he has spoken to share that opinion.
He said: "There is the view that what we are building is just a sprawl and people want better planning for future development."
Peter Bellarby, of the Stonehaven and Lower Deeside ward, wants to see more affordable housing made available, while there were strong calls for a better mix of homes within new schemes.
Ms Gore revealed the structure plan would aim to encourage the building of different sized properties.
She said: "There is a commonly-held view over the last few years that the city has been building flats and the shire has been building four-bedroom or five-bedroom houses. We want to get, in both areas, a much better mix of housing types."
Mr Clark wants more housing developments to be focused in Aberdeen city, while area chair Paul Melling thinks the creation of a new town near Peterhead would allow infrastructure to be put in place before properties.
This would ensure more houses are not added to areas where services are already under strain.
North Kincardine councillor Carl Nelson suggested a new town would be better located in either the Aberdeen to Laurencekirk or Aberdeen to Huntly corridors to utilise greater transport links.