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MASTER THESIS

Baby trade? The implications of powerful market

mechanisms in the Intercountry Child Adoption

system

Sarah Marijnen Student Number: 6272924

June 2014

Master Political Science: International Relations Research Project: Global Migration Supervisor: dhr. dr. J.M.J. Doomernik

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Table of contents

1 Introduction 4

1.1 Problem area 5

1.2 Scientific and social relevance 5

1.3 Contextualization 6

1.3.1 History 6

1.3.2 Recent tendencies 8

1.3.3 International legal framework 9

1.4 Reader’s guide 11

2 Theory 13

2.1 Migration and International Political Economy 13

2.1.1 (Forced) Migration 13

2.1.2 International Political Economy 14

2.1.3 World system theory 15

2.2 Globalization 16

2.2.1 Definition 16

2.2.2. Features of globalization in ICA 17 2.2.3 Three positions in discussions about ICA 18

2.2.4 Consumerism 19

2.3 Global political economy market perspectives 19

2.3.1 Definitions 19

2.3.2 Capitalism and Market Features 20

2.4 Human trafficking 23

2.4.1 Definition 23

2.4.2 Debate on the definition 23

2.4.3 Why does it take place? 24

2.4.4 How does it take place? 25

3 Methodology 26

3.1 Problem statement 26

3.1.1 Operationalization 26

3.1.2 Research questions 27

3.2 Research strategy and design 27

3.2.1 Selection of case 27

3.3 Qualitative methods 28

3.3.1 Content analysis 28

3.3.2 Semi-structured interviews 30

3.3.3 Analyzing primary sources 31

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4 Results and analysis 33

4.1 What market features are inherent in recent ICA? 33

4.1.1 Supply and demand 33

4.1.2 Market agents and financial transactions 35

4.1.3 Value and pricing 37

4.1.4 Commodification 39

4.2 Which key stakeholders are involved in ICA and how do they benefit from

the ICA market? 40

4.2.1 Adoption agencies 41

4.2.2 Sending states 43

4.2.3 Receiving states 44

4.3 Whose rights in ICA are being protected by states? 46

4.3.1 Receiving states 46

4.3.2 The Hague Convention 47

4.3.3 Political will sending and receiving countries 48 4.4 How do adoptive agencies deal with the demand-driven character of the

ICA system? 49

4.4.1 Justifying 49

4.4.2 Competition 49

4.4.3. Associations with trafficking 51

4.5 What are the consequences of the demand-driven character of the ICA market for the adoptees, the (prospective) adoptive parents and the biological

parents of the adoptees? 52

4.5.1 Adoptees 52

4.5.2 (Prospective) adoptive parents 54

4.5.3 Biological parents 56 5 Concluding reflections 58 5.1 Conclusion 58 5.2 Policy recommendations 59 2.3 Further research 61 Bibliography 62 Books 62 Journal articles 63

Legal documents and reports 67

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1 Introduction

1.1 Problem area

Historically, intercountry adoption (ICA) has been a social phenomenon that has arisen due to political, social and economic circumstances in the countries sending their children abroad for adoption (sending countries). After the Second World War, the adoption of children was seen as a humanitarian act, through which orphans from war-torn European countries were given loving homes in the United States (US). The desire to have children took on an even stronger charitable character when many adopted orphans and abandoned children came from (former) war zones in Southeast Asia and later from other underdeveloped countries such as India, Bangladesh and Colombia. The sentimentalized idea of adoption, created by developed countries, had such a significant influence that it obscured the reality. The increasing demand for children in developed countries resulted in a billion-dollar industry where children were being transferred without any form of regulatory mechanisms (Goodwin 2010; Herrmann 2010; Kapstein 2003). This market consists of the demand (couples or singles who are involuntarily childless from developed countries), the supply (orphans or abandoned children), intermediaries (adoption agencies, but also corrupt (governmental) organizations and criminal networks), the costs (the adoption of a child costs between 20,000-35,000 euro and prospective parents are willing to pay more in order to reduce the waiting time and to increase the chance of getting a child) (Schaepmaker et al. 2008).

In this business environment, adoption agencies, advertisers and attorneys can flourish and benefit from adoption. In the article ‘The Economics of the Baby Shortage’ by Posner and Landes (1978) the market forces and financial exchanges that drove ICA were exposed for the first time. The article was followed by a wave of criticism because opponents argued that when applying an economic framework to adoption, it would turn adoptable children into saleable objects in a mechanical economics analysis (Goodwin 2010: 4). Moreover, within the human trafficking discourse, this issue received more attention and it became clearer that regulations were required in ICA in order to protect children (Meier 2008; Smolin 2004).

From this perspective, the Convention of the Rights of Child of 1990 and the Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption of 1993 (known as the Hague Convention) were adopted by the United Nations (UN) in order to regulate ICA

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5 van 74 in the best interests of children and to counter child trafficking. This international legal

framework was an attempt to restrict the profits and market forces in the ICA system.

However, 32 states involved in ICA have not ratified the Hague Convention, mostly sending states, such as Ethiopia, Korea and Haiti (Hague Convention 1993).

Despite the attempt of the Hague Convention, the large discrepancy between supply and demand has put into effect powerful economic mechanisms, where children are being

considered as commodities. The ICA market is therefore driven by its customers and money, and the system has become infected with a substantial degree of child laundering, where children are being kidnapped, stolen, trafficked and bought (Smolin 2004). Child laundering occurs ‘when children are taken illegally from birth families through child buying or

kidnapping, and then “laundered” through the adoption system as ”orphans” and then

”adoptees” (Smolin 2004: 112). The demand creates a financial incentive to launder children for the ICA market. Therefore, one could wonder whether adoption agencies are in search of a loving family for a child or of children for homes in developed countries.

1.2 Scientific and social relevance

The scientific relevance of this thesis lies partially in the fact that there is a lack of focus on ICA in the field of Global Political Economy. The analysis of market features in ICA and the effects of globalization on the commodification of children show how concepts of Global Political Economy are manifested in ICA. Furthermore, ICA is not usually looked at as a migratory process. Most studies that examine international migration concentrate on the movements of either groups or adults (Weil 1984; Selman 2002). However, ICA is a significant type of migration to study because of its increased volume over time and the political and cultural factors involved. This form of migration should interest scholars of international relations/politics for multiple reasons. First, the migration flow of children through ICA involves the most vulnerable citizens, children who do not have parents who protect their rights. Therefore, the protection of these children falls under the responsibility of the state. Second, ICA is characterized by the coordination of an international legal

framework. Third, most developed countries seem to keep their borders closed for migrants from underdeveloped countries. However, for infant migrants from underdeveloped countries the borders are wide open, despite the fact that children are expensive for the state due to

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6 van 74 social services. Fourth, complications in ICA have progressively turned into international incidents that are negotiated by governments at state level. For instance, in the last decade, a small number of American adoptive parents were charged and found guilty of murdering or abusing their adopted children from Russia and other parts of Eastern Europe (Selman 2012: 10). Russia threatened with the temporary suspension of the adoptions to the US, when in 2009 a seven-year old boy from Russia was adopted by an American family and was sent back alone to Russia by his adoptive mother because she rejected him. Consequently, negotiations for bilateral agreements about ICA between the US and Russia were initiated. Because of the differences of opinion, the negotiations lasted longer than one year and were interrupted several times. These disagreements were not related to ICA, but were caused by political struggles between Russia and the US. The result of these struggles was the

suspension by the Russian authorities of all adoptions to the US as of January 2013 (Selman 2012).

As demonstrated earlier, the ICA market is driven by its customers and by profit. Therefore, the need for children in developed countries, instead of the best interest of these children, seems to be the highest priority in the ICA market. I am interested in this topic because I studied Pedagogy and therefore I am concerned with the well-being of children. I think it is interesting that this industry is driven by money, but also charged with strong emotions. This thesis aims to expose the powerful economic market forces in ICA and to explore their consequences. International regulating regimes on adoption (such as the Hague Convention) should increasingly take the powerful economic mechanisms into account in order to regulate the market more effectively and to protect the rights and well-being of children. Furthermore, the thesis intends to utilize its findings by making policy recommendations in order to protect the well-being and rights of (adopted) children, which seems to be at stake.

1.3 Contextualization

This section explains the context of ICA. The history, recent tendencies and the international legal framework of ICA are presented and are used to prelude the coming analysis.

1.3.1 History

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7 van 74 of ICA. According to them, the beginning of ICA started in the aftermath of wars. For

instance, according to Kapstein, ‘after World War II, American families adopted European orphans, chiefly from Germany, Italy, and Greece; after the war in Korea they took in children from that devastated peninsula’ (Kapstein 2003: 116). Lovelock (2000) argues that the practices of ICA in the post Second World War period can be conceptualized as having occurred in two waves. The first wave involved the placement of orphans from Europe, because finding families for children was both an international and a domestic issue in the post-war period. The second wave started after the mid-1970s until the present and has also been shaped by humanitarian considerations for children born into poverty. However, the second wave has also been driven by social and demographic changes in the receiving countries (Lovelock 2000: 908).

The main reasons that have been ascribed to the increasing demand for children in developed countries are social and demographic changes, such as the legalization of abortion, the increased use of contraceptives, higher workforce participation of women and highly

regulated domestic adoption processes (Graff 2008). However, the increased demand for ICA is mainly the result of the significant rise in infertility rates over the last decades. More than six million Americans in the reproductive-age population suffer from infertility. Between 1968 and 1980 the number of persons who sought treatment for infertility doubled (Bartner 2000: 406). Along with the increased number of infertile individuals came a tremendous influx of money and the creation of the ‘family building’ industry. As Bartner further

explains: ‘infertile couples seem driven to incredible lengths to bring children into their lives and to create the traditional, American, nuclear family. Couples pour tens of thousands of dollars into infertility treatments in frenzied attempts to become pregnant’ (Bartner 2000: 407). Annually, Americans spend between one and two million dollars on in vitro

fertilization (IVF) and other infertility treatments. However, treatment fails for about thirty five percent of infertile couples in developed countries. Many of these couples then turn to ICA as their last chance to create a family (Bartner 2000: 408).

In addition to the social and demographic changes in developed countries, the high incidence of poverty, restrictive abortion regulations, fertility rates and unplanned births in

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8 van 74 structural demand for children comes from developed countries and the structural supply from underdeveloped countries (Graff 2008). ICA has gradually been shaped by demand and supply, which belied its humanitarian and altruistic nature especially when ICA became infected with large amounts of money. Thus, as Graff states, ‘unless we recognize that behind the altruistic veneer, international adoption has become an industry -- one that is often highly lucrative and sometimes corrupt -- many more adoption stories will have unhappy endings’ (Graff 2008: 66).

1.3.2 Recent tendencies

Demographer Peter Selman (2012) has analyzed the recent tendencies in ICA and identified several factors and trends behind the numbers. Figure 1 shows trends from 1998 to 2007 for 23 receiving states (world), the top five (US, Canada, France, Spain and Italy), the US and Europe. As figure 1 demonstrates, the global number of ICAs peaked in 2004 with around 45,000 children. Since then, annual numbers have decreased to the point that by 2006 the total was lower than it was in 2002, but still higher than in the late 1990s.

Figure 1

Source: “The Rise and Fall of Intercountry Adoption in the 21st Century: Global Trends from 2001 to 2010’ by P. Selman (2012).

Thus, since 2004 all major receiving countries have recorded a decrease in ICA. However, this fall was marked by contrasting factors and trends in receiving countries. For instance, in

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9 van 74 Italy, the total number of adoptions in 2010 was 20 percent higher than in 2004. From 2009 onwards, the numbers of France and Canada have been rising as well (Selman 2012: 3). While most receiving countries shared the general trend of a rise in numbers up to 2004 followed by a decline since, the story is very different for sending countries. In contrast to most receiving countries, the pattern of change over the period from 1998 to 2007 varies greatly among sending countries. Figure 2 shows trends in total adoptions from the four largest sending countries in 2007 (China, Russia, Guatemala and Ethiopia).

Figure 2

Source: “The Rise and Fall of Intercountry Adoption in the 21st Century: Global Trends from 2001 to 2010’ by P. Selman (2012).

Adoptions from China peaked in 2005 and adoptions from Russia in 2004. The reduction in the number of children sent from Russia and China is partly compensated by the continuing growth in the number of children sent by Guatemala and the large rise in numbers from Ethiopia and Vietnam (Selman 2009, 2012). For instance, adoptions from Ethiopia rose by 98.5 % and from Vietnam by 250% from 2001 till 2007 (Selman 2009: 581).

1.3.3 International legal framework

As mentioned, the demand for children in the 1970s resulted in the mass exportation of children from underdeveloped countries to homes in developed countries. Serious concerns were being expressed about the fact that the increased demand resulted in a billion-dollar

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10 van 74 industry where children were being transferred without any form of regulatory mechanisms. Against this backdrop, international normative frameworks were established. These are the United Nations Declaration (UND), the Convention of the Rights of the Child (CRC), the Optional Protocol to the Convention on the Rights of the Child on the Sale of Children, Child Prostitution and Child Pornography (referred in this thesis as the Optional Protocol) and the Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption (the Hague Convention). This section presents an introduction of each of the Conventions related to ICA.

1.3.3.1 The United Nations Declaration

The UND was established in 1986 and recognizes that ‘a child should not, as a result of foster placement, adoption or any alternative regime, be deprived of his or her name, nationality of legal representative unless the child thereby acquires a new name, nationality or legal

representative’(art. 8). It also established the principle of subsidiarity, which means that ICA should only take place when domestic suitable adoptive parents cannot be found (art. 17).

1.3.3.2 The Convention on the Rights of the Child

The CRC entered into force in 1990 and dedicates several paragraphs to the phenomenon ICA. For example, under article 21 (c), States parties are required to ensure that children adopted through ICA enjoy the same standards as children who are adopted domestically. As in the UND, the subsidiarity principle is recognized in article 21 (b). Article 21 (d) indicates that State parties should take all measures to ensure that the placement of children in ICA does not result in improper financial gains for those involved. The Convention is the most widely ratified treaty in history as 193 States are party to the Convention. South Sudan, the United States and Somalia are the only Member States that have not ratified it.

1.3.3.3 The Optional Protocol to the Convention on the Rights of the Child on the Sale of Children, Child Prostitution and Child Pornography

The Optional Protocol was adopted in 2000, came into force in 2002 and is ratified by 117 states. The first paragraph of article 3 calls on States parties to ensure that coercive adoption is completely covered under criminal law. Thus, the article criminalizes the act of

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11 van 74 Furthermore, paragraph 5 of the same article demands that States parties should take all appropriate administrative and legal measures to ensure all individuals involved in ICA act in conformity with international legal instruments.

1.3.3.4 The Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption

The Hague Convention was adopted in 1993 and came into force in 1995. It is considered as the major multilateral instrument regulating ICA. As chapter 1 (art. 1) describes, the

Convention has three principal objectives:

 ‘to establish safeguards to ensure that intercountry adoptions take place in the best interests of the child and with respect for his or her fundamental rights as recognized in international law;

 to establish a system of co-operation amongst Contracting States to ensure that those safeguards are respected and thereby prevent the abduction, the sale of, or traffic in children;

 to secure the recognition in Contracting States of adoptions made in accordance with the Convention.’

The second chapter (art. 4 and 5) outlines the requirements for ICAs. Authorities in the sending states are charged with the responsibility of determining whether a child is adoptable. The receiving states are responsible for determining whether prospective parents are suitable to adopt. The mechanisms for regulating ICA are outlined in the third and fourth chapter of the Convention. Each contracting state has to create a central authority that is required to undertake all measures required to prevent improper financial gains. These central authorities are charged with exchanging information relating to the prospective parents and the child and felicitating the ICA process. The central authorities in sending and receiving countries must both agree before the adoption can proceed. If the adoption is authorized, both central authorities are required to ensure the safe transfer of the child. In short, the Hague

Convention is established in order to stop the market forces and the profiteering incentives in ICA.

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Following the introduction, an overview of the theories most relevant for this research, inter alia, the world system theory, globalization, capitalism and market features is provided. The subsequent section describes the methodology used in the study. This includes the problem statement, the research questions, the research design and argumentation for the research strategy. This will lead to the analysis, where market features within ICA are exposed; laying a solid basis for analyzing the various stakeholders involved in ICA. Finally, this section will analyze the implications of the powerful market features for actors involved in ICA. The last part provides a conclusion of the results, suggestions for further research and policy

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2 Theory

This chapter provides an overview of theories most relevant for explaining intercountry adoption (ICA). Because its increased volume over time and the political and cultural factors involved, ICA is a significant type of migration to study (Weil 1984). Therefore, ICA is analyzed as a migration flow. The point of departure is the world system theory. In order to show how ICA has developed, theories of globalization are discussed and applied to ICA. The world system theory considers migration as a natural consequence of capitalism and market penetration. Consequently, capitalism and market perspectives are explained. To expose the underlying economic mechanisms in ICA, market features are described and show that everything can become part of the capitalist production of exchange. Additional attention is paid to the commodification of people and how this relates to human trafficking. To

understand the role of human trafficking in ICA, the last section shows why and how human trafficking takes place.

2.1 Migration and International Political Economy 2.1.1 (Forced) Migration

According to Castles & Miller (1993), after the increase of migration flows in the Second World War period, migration has become a significant part of transformations around the world. They state that the 20th century and the early 21st century are ‘the age of migration’, which is linked to the globalization of production, distribution and culture. From a global point of view, as de Haas (2005) argues, this seems to be inaccurate because today the

percentage of international migration is at a similar level as the previous century (about 3 %). However, he states that the phenomenon of international migration has grown on a global scale. The accelerated economic growth in the West and the decolonization after the Second World War resulted in a dominant migration movement from underdeveloped countries to developed countries (de Haas 2005: 1244-1245). This dominant migration corresponds to the practices of ICA, because the vast majority of children who are being adopted come from underdeveloped countries (Selman 2009). Thus, nowadays, most developed countries have become multiethnic and diverse societies through the rise of globalization.

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14 van 74 migration, but how does this relate to involuntarily migration? Betts (2009) states, that all forced migrants have in common that they are faced with severe constraints in their ability to stay within their home countries due to existential threats. Consequently, they need to seek protection outside their home countries or communities (Betts 2009: 1). ICA is seen as forced migration, because the child is in need of seeking protection from another family abroad and has no control over whether or where he or she will be moved to (Graff 2008; Goodwin 2010; Meier 2008; Weil 1984). According to Castles, globalization ‘is not a system of equitable participation in a fairly-structured global economy, society and polity’ (Castles 2003: 16). The North–South divide is the most evidential expression of this inequality. Therefore, as Castles (2003) argues, when analyzing forced migration it is necessary to consider it in the broader context of the relationship between the global South and global North and the international political economy (Ibid.: 17).

2.1.2 International Political Economy

International Political Economy (IPE) as a discipline emerged from the idea that world politics are closely related to the global economy. Markets shape the power relations and interest of states. Historically, the main focus has been on North-South relations. Therefore, within world politics, unequal power relations have been present for as long as the state system (Betts 2009: 127). Within the IPE, Marxism sees the markets as the drivers of

international politics. Therefore, policies of states at international level reflect the interests of the powerful (Ibid.: 130). As Lovelock (2000) notes, the Hague Convention mainly serves the interests of the adoptive parents rather than the interests of the adoptees. The decision for a state to ratify this Convention ‘is shaped by the need to secure access to children for adoption by their citizens’ (Lovelock 2000: 944). The world system theory, which is in line with the Marxist tradition, considers (forced) migration as a natural consequence of capitalism and market penetration. It focuses on both the idea that developed countries need cheap foreign labor and macro-social processes. Despite the fact that ICA is not related with foreign labor, it is a useful theory for analyzing ICA because it suggests that developed countries in the North enter poor underdeveloped countries in the South in search of children and extract them for their own benefit.

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15 van 74 2.1.3 World system theory

Drawing on the work of Immanuel Wallerstein (1974), a variety of theorists link the origins of international migration to the structure of the global market that has developed since the 16th century. According to Wallerstein, there is only one world system, the capitalist world economy. Moreover, he states that the capitalist world economy exist because of the mechanism of surplus appropriation. It is based upon the establishment of surplus through permanently expanding productivity. The surplus gets extracted for the benefit of the

developed countries (Wallerstein 1974: 390). Therefore, the theory assumes that the capitalist system results in an international economic world order rather than mutual interdependence. The dependence between countries leads to exploitation. The different regions of the world can be divided into three parts: the core, the semi-periphery and periphery. The core nations are in the geographically advantaged regions of the world. They promote capital

accumulation into the world economy itself and have the economic, political and military power to reinforce unequal exchange between the periphery and the core. The periphery consists of countries that are extremely vulnerable to exploitation. Underdeveloped countries are the periphery, not because the countries are underdeveloped, but because they are

‘peripheral capitalist’ states, which mean they are dominated and exploited by capitalists. The semi-peripheral region (semi-developed countries like Russia and China) are also being exploited by the core region, while at the same time exploiting the peripheral region (Wallerstein 2004: 4-12).

The theory deals with the relationship between these three parts in a historical context, which is in sync with the emergence of a global market. The geographic expansion of this market has meant the elimination of other world systems (Wallerstein 1974: 408). Sassen (1990) also claims that the incorporation of most regions of the world into the capitalist system has resulted in the subordination of non-capitalist regions (Sassen 1990: 33, 34). As she explains: ‘The consolidation of a world system through the subordination of large areas of the world in the form of a periphery also brought about a shift in the flow of labor. Therefore, the major international labor flows originated in the less-developed countries and went to satisfy the labor needs of the industrializing countries’ (Ibid.: 33).

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16 van 74 periphery in search of labor, land, raw materials and consumer markets (Massey 1993: 444, 445). In history, the market penetration was driven by colonial regimes that controlled poor regions for economic interests in colonizing societies. Today, market penetration is made possible by transnational firms and neo-colonial governments ‘that perpetuate the power of national elites who either participate in the world economy as capitalists themselves, or offer their nation's resources to global firms on acceptable terms’ (Massey 1993: 445). Capitalists in the core nations build and expand communication and transport links to the peripheral regions, in order to ship the goods and manage the business operations. The process of capitalistic economy creates cultural links between core capitalist regions and regions in the periphery. These cultural links reflect a colonial history in which core regions established educational and administrative systems similar to their own in the peripheral regions in order to govern and exploit those regions. These ideological and cultural links are enhanced by mass communication directed from the core regions. Modern consumer tastes are made appealing to people from the peripheral region by means of television programs and

commercials, which transmit information about lifestyles in the core regions. Therefore, ‘the diffusion of core country languages and cultural patterns and the spread of modem

consumption patterns interact with the emergence of a transportation/communication

infrastructure to channel international migration to particular core countries’ (Ibid.: 446-447).

To conclude, the penetration of capitalist market forces into the peripheral region creates a mobile population that is eager to migrate (Ibid.: 444). International migration is seen as a natural consequence of capitalist market forces. ‘Since international migration stems from the globalization of the market economy countries; it follows from the dynamics of market creation and the structure of the global economy’ (Ibid.: 448). As the world system theory demonstrates, globalization, capitalism and market forces are interrelated concepts and are further explained in the next sections.

2.2 Globalization 2.2.1 Definition

Globalization has had a fundamental impact on the global transfer of services and goods with both positive and negative outcomes for individuals and consumers. It has also challenged the relationship between territory, citizenship and identity (Betts 2009: 155). In this thesis, the

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17 van 74 following definition of globalization will be used: ‘the increasing interconnectedness of the world through the compression of time and space, initiated by technological and knowledge innovations, and political events and decisions’ (George & Wilding 2002: 19). In addition, according to Giddens (1998), globalization is not primarily about economic interdependence, but also about how distant events affect us more directly because of the transformation of space and time. Therefore, decisions we make are often global in their effects (Giddens 1998: 31).

2.2.2. Features of globalization in ICA

Applying the phenomenon of globalization to ICA, it would have been impossible for previous generations to adopt a child from the other side of the world, whereas, these days, adopting children from the other side of the world is normalized. Baylis, Smith and Owens (2013: 18) have identified four main features of the process of globalization, which are linked below to characteristics associated with ICA.

- ‘The stretching of social, political, and economic activities across political frontiers so that events, decisions, and activities in one region of the world come to have significance for individuals and communities in distant regions of the globe’. ICA is seen as a response to humanitarian crises and wars in underdeveloped countries. For example, as the HIV/AIDS pandemic grows, more babies will become eligible for ICA (Kapstein 2003: 117-118). Due to demographic changes and activities in

developed countries, for example more wealth or use of contraception, it is possible to respond to the events in underdeveloped countries (Graff 2008; Schaepmaker et al. 2008).

- ‘The intensification of interconnectedness in almost every sphere of social existence’. The option to adopt is much more present than before because networks around adoption have facilitated the flow of ideas around the world (Masson 2001: 145). Because of the intensification of sharing ideas, ICA has resulted in a global practice because it involves a far greater number of countries than before (Lovelock 2000: 929).

- ‘The acceleration of pace of global interactions and processes’. Worldwide systems of transport and communication have made it possible for ICA to move children around the world quickly (Betts 2009: 157). ICA has become easier because

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18 van 74 information about how to arrange an adoption has become more readily available, in particular through the rise of the Internet (Masson 2001: 143). The Internet or ‘worldwide communication also includes a global media that targets welfare issues’ (Dowling & Brown 2008: 353)

- ‘The growing extensity, intensity, and velocity of global interactions, creating a growing collective awareness or consciousnesses’. Images of children from war-torn countries and those suffering in poverty have been rapidly shown around the world. This worldwide media attention has resulted in a collective awareness of children in need and the responsibility to take care of these children. Thus, ‘the attention

highlighted the important role that a global audience can play in establishing whether children’s rights are upheld or violated’ (Ibid.: 353).

2.2.3 Three positions in discussions about ICA

Masson (2001) have identified three perspectives on globalization and ICA. Promoters, abolitionists and pragmatists present value positions in discussions about ICA. Promoters consider ICA as a way to help individual children and see ICA as an ideal solution for children who are in need of loving homes. In their view, the problem of ICA is the presence of too much bureaucracy. Therefore, ‘like natural parents, those seeking to adopt should not be subject to assessment or restrictions’ (Masson 2001: 149).

In contrast to the promoters’ view about the positive impact of ICA, the abolitionists have focused on the negative impact because they stress that ICA is a product of neo-colonialism and ethno-centricity. Children are being adopted from poor states for the need of people in rich, powerful states (Ibid: 148). This perspective corresponds with the world system theory, because the surplus (of children in this case) gets extracted for the benefit of the developed countries (Wallerstein 1974: 390). In addition, abolitionists argue that if the money spent on adopted children would be spent on children’s services in the sending countries, the lives of many children could be improved. Abolitionists are in particular concerned about whether abuse is increasing to meet the demand for children, and that ‘accepted practices such as requiring donations to orphanages, can easily develop into corruption, possibly even the selling of children’ (Masson 2001: 149).

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19 van 74 Pragmatists accept ICA because they believe it can be controlled. It is controllable by a range of unilateral, bilateral and international measures and statements, the Hague Convention in particular. According to pragmatists, only accepting legislation is not enough because it will not raise standards. Therefore, ‘new practices will have to displace existing ones, challenge the beliefs of applicants, agencies, the judiciary of and immigration services, and focus on the attention of governments’ (Ibid.: 150).

2.2.4 Consumerism

Consumption patterns are also being altered by globalization. The world has become a

consumer society where desires and tastes have become essential parts of our lives. Needs are being fulfilled with consumption behavior.1 The ICA system also involves desires and tastes.

An overwhelming preference for children of a certain age, sex, and ethnicity exists (Graff 2008; Goodwin 2010; Kapstein 2003; Meier 2008; Zamostny et al. 2003). As Herrmann notes, the ICA process is seen ‘as "shopping" for a child, with parents selectively seeking a child that best fits their personal needs’(Herrmann 2010: 414).

To conclude, the ICA service is strongly related to the outcomes of globalization. It has become a global practice where in discussions three positions are present (promoters, abolitionists and pragmatists). A preference for particular children is a market element because it involves valuing and pricing, as the next section shows.

2.3 Global political economy market perspectives 2.3.1 Definitions

The market is a fundamental concept that has been applied in the political economy. Classical economists see the market as a public place where objects are exposed for sale and where buyers and sellers are part of a community. Aside from the neoclassical economic ideas, the economic sociologists are convinced that social relations are important for market forces (Polanyi 2001). Political economist Karl Polanyi defines a market as ‘a meeting place for the

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20 van 74 purpose of barter of buying and selling’ (2001: 59). He states that no society could continue to exist unless it has a market economy because that distributes and produces goods (Ibid.: 45).

The distribution of goods has become a global practice through globalizing capitalism. Whereas before, capitalism was organized to serve society, currently markets organize the lives of most people around the world (Balaam & Dillman 2011). Capitalism is defined by Baylis, Smith and Owens as ‘a system of production in which human labor and its products are commodities that are bought and sold in the market-place’ (2013: 560).

2.3.2 Capitalism and Market Features

According to Balaam and Dillman (2011), capitalism involves five core elements. First, markets coordinate society’s economic activities. Second, extensive markets exist for the exchange of land, labor, money and commodities. Third, competition regulates economic activities. Fourth, freedom of enterprise. Fifth, private property. These elements show how products and services are commodified in order to become a part of the capitalist production of exchange. It is said that in a capitalist economy, self-interest drives individual choices and markets shape these choices (Balaam & Dillman 2011: 30-31). In most studies, markets are defined by the presence of supply and demand, market agents and financial transactions, value and pricing and commodification. These are explained in the next sections in order to examine to what extent market mechanisms are present in ICA.

2.3.2.1 Supply and demand

The concept of demand and supply is seen as the main underlying principle of a market (Hausman 1984). In the book ‘Economics’ by Arnold, the law of supply and demand is explained, where price and the demanded quantity are inversely interrelated. The demanded quantity is the total number of units of a commodity that buyers are willing to buy. Examples of factors that can lead to a change in the demand are shifts in income, preferences and the number of buyers. The law of the supply asserts that the quantity supplied and prices are directly connected. Some factors that can lead to a change in the supply are national or international restrictions, expectations of the future price and the number of sellers (Arnold 2008: 54-66).

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21 van 74 2.3.2.2 Market agents and financial transactions

Market agents are the buyers and the sellers, or the consumers and the producers. In case of a competitive market, there are many buyers and sellers financially exchanging the same commodity. The market is in balance of equilibrium when the demand and the supply of a commodity are equal. In that case, no seller could be better off by offering to sell the goods for less or more and no buyer could be better off by offering to buy the goods for less or more (Krugman, Wells & Graddy 2008: 57, 68).

2.3.2.3 Value and pricing

As mentioned, consumption patterns are being altered by globalization. Due to the capitalist market, people have many choices in purchasing products and services because of the wide range of commodities within their reach. The world has become a consumer society where consumers develop preferences, and based on these preferences people are willing to pay a price for certain commodities. In a market, a change in price is caused by a change in the quantity supplied. The price that matches the quantity demanded and the quantity supplied is called equilibrium price (Ibid.: 68).

2.3.2.4 Commodification

Commodities are embedded in the market economy (Radin 1996: xi). Under capitalism, commodification expands into all areas of political and social life. Commodity plays a significant role throughout the work of Karl Marx. Marx defines a commodity as ‘an object outside of us, a thing that by its properties satisfies human wants of some sort or another’ (Marx 1990: 45). In his theory something can be seen as a commodity when it has a use value, an exchange value and a price. It has a use value because of the utility of the goods. The utility is to satisfy the ideal or physical needs of humans. A commodity is completely realized when the object itself has become part of a system of exchange (Ibid.: 46). In sum, everything that becomes a part of the capitalist production becomes commodified.

Drawing on Marx’s work, Polanyi identifies commodities as ‘objects produced for sale on the market’ (1971: 72). According to Polanyi (1971), human beings and land are not

commodities because they are things of nature. In order to include them in market forces it is necessary to subordinate the essence of society itself to the market laws. Therefore, Polanyi

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22 van 74 (1971) considers the commodification of things of nature entirely fictitious because things of nature are not produced for sale (Ibid.: 71,72).

In the book ‘Contested Commodities’ by Radin (1996) the close connection between

subordination and commodification is showed by pointing out how commodification results in the objectifying and degradation of personal identities. She identifies commodification in terms of four characteristics. These are the (1) exchanges of things in the world (2) for money, (3) in the social context of markets and (4) in combination with four conceptual indicators which characterize complete commodification:

1. Objectification centers on the chance of being alienated, which refers to being separated from its holder and manipulate at the will of persons.

2. Commodities are exchangeable.

3. Commensurability, which relates to the nature of value and the worth which can be scaled or be ranked.

4. Monetization, a form through which commensurable valuations are exposed by ranking it in dollar value (Radin 1996: 118-120).

These four characteristics are interrelated, if one is present the others will often be identified as well (Ibid.: 118). Nowadays, more and more things become commodified because they enter into the capitalist production of exchange. The process of commodification shows that everything can be commodified unless markets are regulated with policies, laws and

protocols.

The debate on whether children should be considered as commodities is a notable feature in the discussion around ICA. Most scholars argue that children should not be considered as commodities; they claim it is a moral problem because the self-conception of children as persons becomes impossible and therefore ‘might impinge on personhood’ (Radin 1995: 136). Despite the fact that it may be dangerous and immoral, some scholars argue that because of the huge amounts of money involved in ICA and because there is a market driven by the supply and the demand, children are commodities (Goodwin 2010; Kapstein 2003; Meier 2008).

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23 van 74 The discussion about (fictitious) commodities, commodification and markets leads to the understanding of the need to regulate markets. Despite the fact that societies need markets to continue to exist, Polanyi (2001) argues that unregulated markets have a significant impact on society: the production and distribution of services and goods are only driven by prices and therefore, everything that is produced will be for sale in the market (Polanyi 2001: 71-72). The state should protect itself from the market because market forces include mechanisms that subject human beings by fictitiously commodifying things that are not produced for sale (Ibid.: 72). Thus, the commodification of humans means that people are saleable and

therefore vulnerable to human trafficking.

2.4 Human trafficking

The nature of globalization and its market forces has reinforced the demand for human trafficking globally (Rahman 2011: 60). To understand the role of child trafficking in ICA, this section shows why and how human trafficking is taking place.

2.4.1 Definition

In November 2000, the UN General Assembly adopted a general definition of human trafficking. This definition originates from the United Nations Office on Drugs and Crimes, from Article 3, paragraph (a) of the Protocol to Prevent, Suppress and Punish Trafficking in Persons. It defines trafficking in persons as:

‘the recruitment, transportation, transfer, harbouring or receipt of persons, by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation. Exploitation shall include, at a minimum, the exploitation of the prostitution of others or other forms of sexual exploitation, forced labor or services, slavery or practices similar to slavery, servitude or the removal of organs.’

In addition, paragraph c and d describe child trafficking as ‘the recruitment, transportation, transfer, harbouring or receipt of a child for the purpose of exploitation’. ‘Child’ means any person less than eighteen years of age.

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24 van 74 2.4.2 Debate on the definition

There are some definitional problems regarding human trafficking, because many the different organizations and lobby groups that focus on human trafficking seek to address a variety of concerns. As O'Connell Davidson and Anderson explain:

‘These definitional problems are made particularly intractable by the fact that “trafficking in persons” is used as an umbrella term to cover a range of actions and outcomes, rather than a single, unitary act leading to one specific outcome. Viewed as a process, trafficking can be said to entail several phases – recruitment, transportation (which could be across several countries), and control in the place of destination it has proved remarkably difficult to obtain consensus on a precise and workable legal definition of the term’ (2002: 8).

The general protocol fails to explicitly define terms as ‘exploitation’, ‘vulnerability’ and ‘coercion’, which makes it problematic for those are who are dealing with trafficked persons into sectors other than the sex industry (Ibid.: 10). Those who are concerned with children are also using the definition of the United Nations Human Rights because it has a focus on children. Their Optional Protocol to the Convention on the Rights of the Child on the sale of children, child prostitution and child pornography came into force in 2002. It states that the sale of children refers to any act or transaction whereby a child is transferred by any person or group of persons to another for remuneration or any other consideration.

Moreover, the general definition of trafficking is an attempt to separate trafficking from the legal migration systems and from smuggling by emphasizing the use of deception, force and coercion. Therefore, trafficking is generally considered as a form of illegal migration and 134 countries and territories globally have criminalized trafficking by means of defining a

specific offence in line with the above described protocol (ILO 2008; UNODC 2012). However, legal migratory processes often involve illegal components (such as illegal

documents). Thus, in human trafficking practices there is no simple distinction between legal and illegal migration (Davidson & Anderson 2002; Rahman 2011; Salt & Stein 1997).

2.4.3 Why does it take place?

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25 van 74 with the demand from the wealthy countries for foreign labor, facilitated by ease of travel, are often pointed to as the main underlying factors leading to trafficking (Anderson & O’Connell Davidson 2005; Bales 2006; Rahman 2011). The most relevant element that fosters human trafficking is demand and supply. Human trafficking is a perversion of these economic principles (Bertone 2004: 9). The supply side often involves the movement of people from their home countries because they are often plagued with several social, economic, political as well as cultural factors that make the victims to the advanced countries vulnerable’ (Rahman 2011: 61). Therefore, vulnerability is the primary problem driving the supply side of human trafficking (Bales 2006; Bertone 2004; Rahman 2011). As Rahman notes,

‘traffickers in many countries often use force to capture victims and coerce them into submission with little resistance’ (2011: 65). According to Schloenhardt (1999), to facilitate the supply, organized crime groups are driving the market by encouraging vulnerable people into trafficking in order to make more profits. Criminal groups are surviving because of the existence of a consumer population that provides a continuous demand for the commodities that are on offer (Ibid.: 139). Furthermore, Schloenhardt (1999) focuses on the relationship between increased consumer demand and organized crime. He argues that organized crime is powered by the needs and demands of its customers, while the victims are in an inferior position, being subordinated to the needs of the customers.

2.4.4 How does it take place?

Organized crime, like human trafficking, has quickly responded to the emergence of global trading by adapting operational and organizational structures. It even ‘exploits the economic opportunities which have arisen from the globalisation of the world’s markets’ (Ibid.: 155). Generally, according to Rahman (2011), human trafficking is organized around five

participants. First, the trafficked migrant victims. Second, those who recruit the migrant victims for transport. Third, the buyers who claim ownership of the migrant victims. Fourth, the enablers, who work behind the scenes by assisting in facilitating the movement of the migrant victims. Fifth, pimps, in the case of sex trafficking, offer consumers clientele services at the expense of the migrant victims (Rahman 2011: 58).

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26 van 74

3 Methodology

The following chapter presents the problem statement and the research questions. It also contains the research design and argumentation for the research strategy.

3.1 Problem statement

The problem statement of this thesis is: How to explain the powerful market mechanisms in ICA, and what are their implications for actors involved in ICA?

3.1.1 Operationalization

In general, intercountry adoption (ICA) is defined as ‘an adoption that involves a change in the country of habitual residence of the adopted person’ (The Hague Convention). Therefore, ICA always involves the jurisdiction of at least two countries. For the sake of clarity,

‘intercountry adoption’ (ICA) differs from ‘international adoption’ (IA). To illustrate, the adoption of a Colombian boy by Colombian citizens in the Netherlands is a form of ICA and not IA. If the boy was adopted by Dutch residents in Colombia, it involved an IA, not ICA. Thus, ICA differs from IA because with ICA the adopted child is changing its country of residence, and IA involves parents with another nationality than of the adopted child. The terms may be similar in appearance, but for the purpose of this research the focus is on ICA and only the adoption of children is included in this thesis.

As explained in the theory section, the large discrepancy between supply and demand and other market features in the ICA system has put into effect powerful economic mechanisms (Graff 2008; Herrmann 2010; Kapstein 2003; Meier 2008; Schaepmaker et al. 2008; Smolin 2004, 2005).

The actors involved in ICA are classified on macro, meso or micro level.

- Actors on macro level: receiving and sending states and the international organization United Adoptees International.

- Actors on meso level: adoption agencies and adoptees organizations.

- Actors on micro level: (prospective) adoptive parents, biological parents of adoptees and adoptees.

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27 van 74 3.1.2 Research questions

To provide an answer to the problem stated in the above, the following research questions will be analyzed:

- What market features are inherent in recent ICA?

- Which key stakeholders are involved in ICA and how do they benefit from the ICA market?

- Whose rights in ICA are being protected by states?

- How do adoptive agencies deal with the demand-driven character of the ICA system? - What are the consequences of the demand-driven character of the ICA market for the

adoptees, the (prospective) adoptive parents and the biological parents of the adoptees?

3.2 Research strategy and design

The research strategy in this study is a deductive approach of qualitative research. The deductive approach applies due to the theoretical debate which directs the findings of the study (Bryman 2012: 8). Furthermore, the case study design is used because this research involves an intensive and detailed examination of one case (Ibid.: 49).

3.2.1 Selection of case

The case Netherlands is an exemplary case, because the Netherlands provides a suitable context for examining key processes in ICA (Ibid.: 51). The Netherlands has one of the biggest demands for adoptive children (Selman 2009). In addition, the Netherlands as an example is accessible because the research takes place in the Netherlands.

3.3 Qualitative methods 3.3.1 Content analysis

According to Weber (1999), a content analysis is a research method to make valid inferences from texts by using a set of procedures. These inferences are about the message itself, the sender or the audience of the message. A qualitative content analysis is a form of qualitative research whereby certain documents or other communications are studied intensely. The aim of this kind of research is to identify intentions and other characteristics of the sender, to

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28 van 74 describe behavioral responses to communications and to describe trends in communication content (Weber 1999: 9). Schreier (2012) describes a content analysis as a systematic method for analyzing the meaning of qualitative data. Meaning is that the recipients attribute to the images and words received. Therefore, meaning is not a given, it is a construct. Furthermore, content analysis is systematic, flexible and it reduces data. It is systematic because of the clear steps, which are: selecting the material, building a coding frame, dividing the material into units of coding, main analysis and interpreting and presenting the findings. It is also flexible because the coding frame is tailored to the material. It reduces data in two ways. First, not all information will be used. In fact, the analysis will be limited to those aspects that are relevant to the research question. Second, by classifying the concrete information in the material according to the coding frame, the specifics will be lost and cases can be compared (Schreier 2012: 4-8). A coding frame includes main categories and subcategories. The main categories are the main aspects, and the subcategories specify what is said about the main categories (Ibid: 61-62).

For the purpose of this research, a content analysis was conducted due to an interest in examining how adoption agencies and (prospective) adoptive parents deal with the powerful market mechanisms in ICA. Furthermore, the study involved a visit to an information meeting of an adoption agency, the analysis of adoption agencies’ websites, and the study of weblogs of (prospective) adoptive parents.

3.3.1.1 Selection of an information meeting of an adoption agency

In the Netherlands there are six agencies that have a license from the Ministry of Security and Justice to mediate in ICA. These are: Stichting Afrika, Stichting Kind en Toekomst, Stichting Meiling, Nederlandse Adoptie Stichting, Adoptiestichting A New Way and Vereniging Wereldkinderen. On the 22 of March 2014, this adoption organization organized an information meeting for people who are interesting in adopting children. From the six adoption agencies, Vereniging Wereldkinderen was the only one to organize an information meeting during the period of this study. It was possible to observe how the idea of adoption was being ‘sold’ and to identify intentions and other characteristics of the speakers.

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29 van 74 3.3.1.2 Selection of websites of adoption agencies

As White and Marsh notes, pictures and text on a website are used to convey one or more meanings (2006: 27). Thus, the focus is on slogans, texts and images in order to analyze trends and to observe any speculations about the impact of the changed character of the ICA market. The websites of all the six Dutch agencies that have a license from the Ministry of Security and Justice to mediate in ICA are analyzed. These are:

- www.stichtingafrika.nl - www.kindentoekomst.nl - www.meiling.nl - www.nederlandseadoptiestichting.nl - www.anewway.nl - www.wereldkinderen.nl

3.3.1.3 Selection of weblogs of adoptive parents

Weblogs offer a direct and interactive interface for publishing multimedia on the Internet and produce a community of interlocutors. A weblog refers to ‘a website which contains a series of frequently updated, reverse chronologically ordered posts on a common web page, usually written by a single author’ (Hookway 2008: 92). Within social research, its potential lies in the fast and ease of publishing and of the open response (Fielding et al. 2008: 307). Most blogs have a range of uploaded multimedia, such as photos, written text and video clips. Hence, weblogs represent a significant format of popular culture and where the personal issues become public (Ibid.: 309, 312). Weblogs are created by bloggers who are using their own language and personal reflections. The anonymity of the weblogs also means that

bloggers feel relatively free about what they write. Therefore it gives an insight into everyday life (Hookway 2008: 93).

For the purpose of this research, weblogs of (prospective) adoptive parents were analyzed to provide insight into the way (prospective) adoptive parents reflect on the adoption industry, how they frame the role of money, demand and supply and other powerful market

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30 van 74 refers ‘to a judgment about whether findings from one context are applicable to another’ (White & Marsh 2006: 36). Therefore, the sampling of the websites does not need to ensure that all websites being analyzed have an equal probability of being included in the sample. Instead, ‘it may have as its objective providing the basis for identifying all relevant patterns in the data or characterizing a phenomenon’ (Ibid.: 36).

3.3.2 Semi-structured interviews

To examine the implications of the powerful economic mechanisms in ICA for agencies and adoptees, semi-structured interviews were conducted with staff of adoption agencies,

adoptees and (inter)national organizations who stand up for the rights of adoptees. These interviews were semi-structured, because the emphasis was on how the respondents frame and understand events and issues. Which means that the respondents showed what in their view is important in explaining and understanding patterns and events (Bryman 2012: 471). In addition, adoption is a sensitive and personal event and in order to give adoptees a voice it is important that they can express their own thoughts and ideas. In order to structure the interviews slightly, an interview guide was used which can be found in the appendix.

3.3.2.1 Selection of persons

One interview was conducted with Professor Emeritus of adoption R.A.C. Hoksbergen. In his academic career he focused on the well-being of adopted children and strongly criticized the way in which the current adoption industry works. Furthermore, ten adoptees were

interviewed because they were able to provide insight into how they think adoption is being framed, to what extent they think they are being commodified and whether they think that the Dutch government is sufficiently concerned about the rights and well-being of adopted children/adults. In addition, it seems that adoptees are tired of people who are talking about them, instead of to them. The adoptees were between 20-40 years of age and came from Sri Lanka (2), Ethiopia (1), Jamaica (1), Colombia (4), Brazil (1), and Haiti (1). The contacts for the interviews were enabled through snow-ball sampling.

During the information meeting at Vereniging Wereldkinderen three staff members were interviewed. An additional staff member of Wereldkinderen and a staff member of Stichting Afrika were interviewed via Skype. From the six adoption agencies in the Netherlands, only

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31 van 74 Wereldkinderen and Stichting Afrika responded. Moreover, Jan Wierenga, who is the former director of the Board of Supervisors of Vereniging Wereldkinderen was interviewed. Los Hijos and Arierang are two Dutch organizations for adoptees coming from Colombia (Los Hijos) and Korea (Arierang), were also interviewed to clarify why it is apparently necessary for adoptees to collectivize and stand up for their rights. In addition, two staff member of United Adoptees International were also interviewed. This organization addresses the lack of attention and seriousness of the (legal) position of adoptees and their biological families. They work with a large international network of scholars, adoptees, politicians, media and biological families worldwide. In total twenty-one interviews were conducted, all of which are recorded.

3.3.3 Analyzing primary sources

In addition to the content analysis and the semi-structured interviews, primary sources are analyzed. The main documents analyzed in this research include: the Convention on the Rights of the Child of 1989, The Optional Protocol to the Convention on the Rights of the Child on the Sale of Children, Child Prostitution and Child Pornography the Convention on Protection of Children of 2000 and the Convention on Protection of Children and Co-operation in Respect of Intercountry Adoption of 1993. By analyzing these documents the legislative context of ICA is clarified.

3.4 Reliability, validity and limitations

The focus of qualitative content analysis is on creating a picture of a certain phenomenon, which is always imbedded within a specific context, and not on exposing the reality

objectively. Within qualitative research, reliability means the dependability of consistency. A variety of techniques are used to record the observations consistently. In addition, by keeping track of all activities and recording all interviews, the reliability is increased.

Validity in qualitative research is concerned with the degree to which a research measures what it intends to measure. There are two types of validity. Internal validity refers to whether the theoretical ideas represent the observations. External validity refers to what extent the findings can be generalized. The internal validity and reliability of the coding frame is subject to the extent to which the categories represent the concepts of the research question (Schreier

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32 van 74 2012: 7). This was achieved by adapting the frame so that it fits the relevant material and because the used concepts are operationalized, the internal validity is strengthened. The external validity is weak, because the samples that are used are not randomly selected and therefore not representative for the research population. However, as noted before, the aim of this qualitative research is not generalizability, but transferability. By identifying all relevant patterns in the data, the transferability is strengthened. In general, by using more than one method to gather data, it is to be hoped that the study will overcome the problems and the weakness that come from single method studies, and to strengthen the validity and the credibility of the results, which refer to methodological triangulation (White & Marsh 2006: 38).

A limitation of this research is the fact that an explorative Internet data collecting strategy is used. This is followed by snowball sampling which led to the most debated and cited writings on various elements of the research statement. In this manner, there was an access to large volumes of journals, reports and legal documents. However, the changeability of information on the Internet challenges the long term access to the same data. To ensure this problem, all information in this thesis is referenced. As mentioned, the samples that are used for the interviews and content analysis are not randomly selected. Therefore, another limitation of this research is the fact that no distinction between countries is being made. For example, differences between sending countries are not included in this research and therefore, the specific context of countries is not studied. However, for the purpose of this research this is of minor importance because it aims to expose the powerful economic market forces in ICA and to explore their consequences.

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33 van 74

4 Results and analysis

4.1 What market features are inherent in recent ICA?

The focus in this section is on exposing the market features within ICA. It provides a solid basis for analyzing the actors involved in ICA, and more importantly, how the various stakeholders benefit from it. As explained in the theoretical framework, the market features that are most agreed upon by scholars are supply and demand, market agents and financial exchange, value and pricing and commodification.

4.1.1 Supply and demand

As mentioned in the theoretical chapter, the concept of demand and supply is seen as the main underlying principle of a market (Hausman 1984). The world system theory suggests that supply and demand drive the market and that the state serves the economy. States seem to intervene in ICA because they participate in the international regulative framework of ICA (such as the Hague Convention). However, despite the attempt of these international

conventions to regulate the market, demand and supply are still present in a powerful way, as this section shows.

As previously explained, there has been a stable increase in the number of adopted children since the Second World War. However, the period from 1998 to 2010 witnessed both a significant rise and a significant fall in the number of children adopted each year. While in 1998 there were no more than 32,000 adoptions worldwide, by 2004 this figure had increased to more than 45,000; by 2009 the global total figure had fallen to less than 30,000 (Selman 2009, 2012). This rise and fall of adoptions can be explained by the economic mechanisms of supply and demand. One of the key reasons for the declining numbers of adoptions is a decrease in supply from sending countries. China and Guatemala are examples of countries where the supply has decreased.

Until 2005, China was the world’s leading country in sending children for adoption.

However, as from 2005, the number of adopted children from China has fallen dramatically (Selman 2012). The central adoption authority in China reduced the number of children sent abroad by strictly judging prospective adoptive parents by their age, income, weight, marital history and health. It is assumed that China wanted to limit adoptions because of the

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34 van 74 declining poverty, the growing gender imbalance, and scandals involving trafficking of children for the purpose of ICA (Graff 2008: 61). In addition, on the first of January of 2006 China ratified the Hague Convention, which stipulates that domestic adoption should be the first option, and ICA the last (Schaepmaker et al. 2008: 22). This example of declining supply demonstrates how this ‘has led many prospective parents to shop around for a country that puts fewer barriers between them and their children’ (Graff 2008: 61).

A country without many regulatory barriers was Guatemala. Between 1997 and 2006 about 1,125 Guatemalan children were adopted annually. From 2006 and 2007 Guatemala was one of the main exporters of children. In 2007, one out of every hundred live births (4,844 children) led to an ICA (Selman 2009: 584). In this year, nearly all adopted Guatemalan children were less than one year old. This seems odd, because according to UNICEF, 95 percent of the orphans worldwide are more than five years of age.2 The vast majority of the institutionalized children in Guatemala are not adoptable healthy babies because they are older than five years of age, and therefore almost none of them have been adopted abroad. At the end of 2007, UNICEF and the Guatemalan government conducted a survey and found approximately 5,600 adolescents and children in Guatemalan institutions. Fewer than 400 children were below one year of age. And still, in 2006, more than 270 babies were being sent to the US every month. These babies did not come from the institutions (Graff 2008:61). As Graff further explains: ‘last year [2007], 98 percent of U.S. adoptions from Guatemala were "relinquishments": Babies who had never seen the inside of an institution were signed over directly to a private attorney who approved the international adoption -- for a very considerable fee -- without any review by a judge or social service agency’ (Ibid.: 61). Therefore it is conceivable that a country as Guatemala demonstrates how the supply of adoptable babies was increased to meet the foreign demand. It seems quite understandable that most prospective parents want to adopt healthy babies. However, this demand for healthy Guatemalan babies was so large that the pressure from the demand side resulted in the

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