Demographic shrinkage has created 'new' challenges in the spatial and urban development of the developed world and its semi periphery for nearly three and a half decades and it requires a different way of thinking and different solutions as well compared to previous development practices. Theoretical research and development activities in practice are further aggravated by the mono-minded mentality of society, economy and politics fallen a victim to charms of 'growth'; the slow recognition of the fact of spatial-urban shrinkage and the reluctance to deal with the problem (especially on the semi periphery). In this paper I would like to outline the settlement and spatial problems of demographic shrinkage and suggest certain theoretical solutions being aware of the fact that there is no universal solution for shrinkage; each and every settlement has to find and carry out their own solution - emphasising the mobilisation of the endogenous resources of the given region or settlement.