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Review of International Political Economy
ABSTRACT
Since the 1980s, the international market for commercial surrogacy has grown
at a quiet but considerable pace. Each year, thousands of women agree to
carry, for a fee, the child of another woman. Thousands of babies are born a
a result on shaky legal legs: conceived by one set of parents yet claimed by
another. Most of these children were born in the market as well as the womb,
the product of desire combined with the ability to pay. The central argumen
of this paper is that surrogacy must be approached as a commercial relation
ship. There is already an active international trade in the components of bab
production - wombs, sperm and eggs. There are rapidly advancing technolo
gies that are certain to expand both the demand for surrogacy services and
the supply of surrogate mothers. Yet the underpinnings of the surrogacy
market - the rules, laws, rights and contracts - have been notably slower to
evolve. Legislative bodies in both the United States and Europe have been
loath to deal directly with the issue of surrogacy, intervening primarily in th
form of prohibition. Yet because the demand function in this market can b
so intense, couples are entering into surrogacy arrangements even when the
suspect that the underlying contract is either illegal or unenforceable. Fund
mentally, commercial surrogacy is an issue of political economy. It involves
an economic relationship that sits within a deeply political calculus, one that
goes to the very heart of political economy. What, the debate over surro
gacy asks, can legitimately be sold in a market transaction? Who decides?
And how can any authority weigh the desires of having a child against th
dangers of selling one?
KEYWORDS
Surrogacy; reproduction; mothers; international trade; feminist theory;
family law.
In 1985, the tragic story of Baby M grabbed all the tabloid headlines. It was
a Solomonic tale of love and greed that centered on the tiny child, born to
one mother yet claimed under law by another.
The details were straightforward. A professional couple, Bill and Betsy
Stern, decided not to risk the dangers of childbearing when they learned
that Betsy was suffering from multiple sclerosis. Determined to have a
child 'of their own/ however, they contracted with a surrogate mother,
a 26 year-old woman named Mary Beth Whitehead, and agreed to pay
her $10,000 in exchange for the conception and birth of 'their' child, the
genetic offspring (via artificial insemination) of Bill Stern and Mrs White
head. The pregnancy was uncomplicated and Mary Beth Whitehead abided
by the terms of her contract for nine months. Four days after the baby
was born, though, Mary Beth came to visit the Sterns and disappeared
with the child, later arguing that, 'I signed on an egg. I didn't sign on
a baby girl.' The Sterns called the police; Mary Beth threatened to leave
the country; and for weeks the drama played out in the courts and in
ternational media. Eventually, Bill Stern won sole custody of his daugh
ter and Baby M went home. She was followed in due course by scores
of other children who entered the world on shaky legal legs in the last
decades of the twentieth century, born of one set of parents, yet claimed -
biologically, emotionally, or commercially - by another. Some of these chil
dren were conceived in altruism, with one biological mother producing
what another could not bear. Many, though, were conceived in the mar
ket as well as the womb, the product of desire combined with the ability
to pay.
It is hard to imagine the child as commerce. Babies, after all, are the
product of love, not money, a conception that occurs far away from any
commercial activity. There are, to be sure, numerous cases in which eco
nomic circumstance affects birth rates. Poor parents across time and place
have viewed their children as potential economic assets, weighing their
eventual economic contribution- in the rice field or factory or manor -
against the costs of carrying them through childhood. Parents have cho
sen their children's gender based on economic factors, using infanticide or
abandonment to rid themselves of less-valued offspring. Under the most
desperate circumstances, they have even used their children as direct as
sets, selling them into slavery or indentured servitude. Yet even in these
extreme cases, the act of conception itself is hardly viewed as an economic
act. Instead, it is an inherently intimate form of production, a private 'trans
action' that has nothing to do with either business or society.
However, what happened in the Baby M case was clearly a commercial
transaction. Mr Stern paid Mrs Whitehead to conceive and bear a child. In
addition, the unfolding of the case raised excruciating political and social
questions. Is the 'real' mother in cases of contested surrogacy the woman
who physically bore the child or the one who arranged for its conception?
288
the egg is donated from a different woman, and some use what might
crudely be called a mix-and-match strategy, blending donated sperm with
donated eggs implanted in a biologically unrelated womb. As the technol
ogy supporting all these variants improves, the demand for surrogacy is
almost certain to expand.
The problem, though, is that the underpinnings of the surrogacy market,
the rules, laws, rights, and contracts, have been notably slower to evolve.
Legislative bodies in both the United States and Europe have been loath
to deal directly with the issue of surrogacy. And insofar as they do deal,
their interventions have mostly taken the form of prohibition. Commercial
surrogacy is banned, for example, in Germany, France, and several Aus
tralian states. It is sharply constrained in Israel and the UK, and in most
of the US states that have taken legislative action in this area (Field, 1990;
Garrity, 2000; Wunderlin, 2002; Deech, 1998). Yet because the demand func
tion in this market can be so intense, couples are entering into surrogacy
arrangements even when they suspect that the underlying contract is ei
ther illegal or unenforceable. They are crossing state boundaries in search
of both surrogates and sympathetic courts, and they are sometimes even
importing the surrogate directly. Since so little of this behavior is regulated,
opportunities for fraud abound. When fraud occurs - or when a surrogate
refuses to stop smoking, or to abort a deformed fetus, or give up a newborn
child- then the courts inevitably get involved, reviewing contracts that may
or may not be enforceable in light of legislation that frequently does not
exist.
Fundamentally, commercial surrogacy is an issue of political economy.
It involves an economic relationship that sits within a deeply political
calculus, one that goes to the very heart of political economy. What, the
debate over surrogacy asks, can legitimately be sold in a market transac
tion? Who decides? Flow can the state or any authority weigh the desires
of having a child against the dangers of selling one?
often 'put out' their younger children, placing them with smaller or child
less families where they would learn a trade or provide an extra set of
working hands (Marsh and Ronner, 1996). Such transactions occurred well
beyond the market and neither woman - the birth mother or the adoptive
mother- was compensated for her services.
Elsewhere, surrogacy assumed a more intimate connection, one more
akin to today's version of the process. Infertile women chose surrogates,
often their maids, to bear children for them. History records these transac
tions most vividly in the book of Genesis, where Rachel, the wife of Jacob,
commands her husband to consort with her maid. 'Behold my maid, Bil
hah,' she cries, '[G]o in unto her, and that she may bear upon my knees, and
I also obtain children by her.' Abraham's wife, Sarah, likewise relies on her
maid Hagar to conceive Ishmael. In Biblical surrogacy, therefore, as in most
modern surrogacy relations, the child was genetically related to the father
that would raise him. The biological mother, by contrast, was neither a pure
volunteer nor a paid provider. She was a servant in most cases, or some
times a second wife or concubine of the father. As Pamela Laufer-Ukleles
points out, therefore, the surrogate mother in these situations was essen
tially more of a surrogate wife (Laufer-Ukeles, 2003). Frequently, she was
acknowledged as the mother of her biological children, who were simply
raised in the household of another woman.
Another form of surrogacy arose in the Middle Ages, when wealthy
women regularly turned their newborns over to wet nurses, nursing moth
ers who, for a fee, would assume the care and feeding of an additional child.
Typically, the child would live with the wet nurse during the first year of
life, with the natural mother making only occasional visits (Golden, 2001;
Giladi, 1999; Sussman, 1982; Fildes, 1988). As is the case in modern surro
gacy, the wet nurse had no long-term involvement with the child; she was
simply employed for a specific task and paid a non-trivial fee. As with sur
rogates as well, medieval wet nurses tended to be poorer than the mothers
they served and to have their own biological children.
Over time, of course, preferences changed. Shifting mores reified the
notion of motherhood across the industrializing world, creating what his
torian Carl Degler has referred to as a 'cult of domesticity' (Degler, 1980,
pp. 26-51). Wet nurses went the way of concubines, as Western couples
settled into stable patterns of monogamous, multi-child households and
adhered to religious beliefs that sanctified child bearing only in the context
of marriage. Children born out of wedlock were frowned upon, as was any
form of physical contraception (Riddle, 1992; Tone, 2001). Infertile couples
were simply consigned to their fate, assuaged only by a frequently voiced
belief that this was God's will.1
This situation prevailed until the final decades of the twentieth century,
when a series of technological developments re-created the option of arms
length conception.
291
292
husbands with genetic diseases; others had husbands who could not pro
duce sperm; still others had no husband but a desire to produce children
nevertheless. In each of these cases, AI solved a problem and created a
market.
The commercial piece started slowly, as reproductive clinics edged into
the business of intermediation. Initially, the clinics used sperm only from
their patients' husbands. Then they took donations from friends or fam
ily, and then they realized that a more impersonal system could actually
enhance both the quantity and quality of the sperm supply. By moving
toward the market - soliciting donors and paying them a nominal fee - the
clinics could reduce their dependence on a patient's circle of friends and
impose a more anonymous form of quality control. Using donated sperm,
women (and their husbands) would not actually have to choose a man to
father their child. They only had to choose his sperm. By 1980, there were
17 frozen sperm banks across the United States, offering more than 100,000
samples for sale (Fleming, 1980, p. 14).
For surrogacy, the implications of AI were profound. In the past, the only
way for surrogate mothers to produce children was to engage physically in
sexual relations with the prospective father - a messy business under any
circumstances and one that held little appeal for the wives of the husbands
involved. With AI, however, conception was removed from sex, making it
possible for a man to impregnate a surrogate without even meeting her.
This physical distancing made surrogacy a considerably more attractive
option. Combined with ever-increasing sperm banks, it also made surro
gacy more feasible, allowing infertile couples to procure both sperm and
eggs from outside, unrelated sources. In economic terms, then, the emer
gence of commercial AI enhanced both the demand for and supply of
surrogate mothers (Hewitson, 1997). Once demand and supply were in
place, the market followed readily.
One of the first to recognize the commercial potential for surrogacy was
Noel Keane, a Michigan attorney who noticed in 1976 that more and more
of his clients were intrigued by the reproductive potential of AI. Having de
spaired of conceiving children by other means, these couples began to ask
Keane to find them surrogates, women who would be willing to undergo
AI and then give the child to his or her biological father. Keane agreed to
assume this broker role and placed advertisements in Michigan papers,
offering prospective mothers a fee for the service of surrogacy. With this
act, he effectively launched a market, searching for a supply (of mothers)
to meet the demand that was already apparent in his office.
Just as his business was launching, though, Keane encountered a fun
damental problem: under Michigan law, the sale of babies was illegal.
Practically, this meant that commercial surrogacy was also illegal, since
the non-birth mother in a surrogacy arrangement was never biologically
related to her intended child. Instead, even when the child was the genetic
293
ovaries, fertilize it with Mr Brown's sperm, and then re-implant the eight
cell embryo back into Mrs Brown's uterus. The infamous test-tube (a petri
dish, actually) was but a tiny part of conception, providing the out-of-body
environment in which fertilization could occur.
Initially, IVF was used almost exclusively within the bonds of marriage.
Couples like the Browns scrambled to an emerging cadre of IVF clinics,
while doctors - particularly in the United States, UK, and Australia -
rushed to perfect the techniques that had produced Louise Brown. Gov
ernment bodies in all three countries analyzed the medical breakthrough
with some suspicion, but eventually approved IVF, with some restrictions,
for the treatment of infertility (Ethics Advisory Board, 1979; Department
of Health and Social Security, 1984; Committee to Consider the Social, Eth
ical and Legal Issues Arising from In Vitro Fertilization, 1982). By 1985,
IVF was a commonly employed practice and a quietly thriving industry.
In the United States alone, roughly 70 clinics offered in vitro fertilization
procedures, drawing from a clientele with overwhelmingly similar char
acteristics: they were young, married, and suffered simply from defective
fallopian tubes (Singer and Wells, 1984).
By this point, however, the implications for surrogacy were simply too
tempting to ignore. Technically, the beauty of IVF was that it allowed some
infertile women to by-pass the physical blockage that prevented pregnancy.
Commercially, however, it allowed surrogacy arrangements to circumvent
their own blockage - the legal and moral blockage that had traditionally
bound wombs and eggs. Under traditional surrogacy arrangements, after
all, the surrogate mother was also the genetic mother of the child she bore.
Like Rachel's maid, the surrogate was in fact giving 'her' child over to
another woman, one with no biological links to the child in question. This
central asymmetry made surrogacy a legal morass, since the surrogate
undeniably had a greater claim on the child than the intended mother
did. Indeed, in nearly all of the contested surrogacy cases, the surrogate
mother won back the rights to 'her' child, qualified only by the compet
ing rights of the contracting father, who had an equal biological claim.
The contracting mother, by contrast, had only a contractual right to the
child, a right that both society and the courts found increasingly difficult to
uphold.2
The attraction of IVF in this context was its potential to split the genetic
mother from the surrogate mother; to impregnate the surrogate with an
other woman's eggs and enable her to give birth to a genetically unrelated
child. Under this mix-and-match arrangement, the bond between surro
gate mother and contracted child would theoretically be weaker than under
traditional surrogacy, since the birth mother's only link would be through
pregnancy. In addition, the contracting family, by contrast, would have a
relatively stronger claim. Commercially, therefore, gestational surrogacy
implied a less contentious social environment and a more diverse source
296
of exploitation: poor women were selling their bodies - or at least the use
of their bodies - to wealthier individuals (Grayson, 1998). The market, in
other words, was forcing women into surrogacy; causing them to do that
which they otherwise would not choose (Oliver, 1989, p. 97; Dworkin, 1983,
p. 182).
Such opposition, however, did not impress the courts in this case. In
stead, both the trial court and the California Supreme Court found for the
contracting parents in Johnson vs Colvert. They argued that although both
'mothers' in this case presented proof of maternity, 'she who intended to
procreate the child - that is, she who intended to bring about the birth
of a child that she intended to raise as her own - is the natural mother'
(McEwen, 1999, p. 281). Under California law, therefore, motherhood was
essentially defined as the intent to create a child, regardless of the mother's
physical role in the reproductive process. The surrogate, by contrast, had
a much smaller claim on the child, a non-biological claim that could now
be trumped by the traditional force of contract.
This was the distinction that gestational surrogacy allowed, severing the
biological tie from the maternal. Once this split was achieved, it became
far easier for courts and other observers to find a role again for contracts.
components of assisted conception - the eggs, sperm, womb, and the gov
erning jurisdiction - it was but a small and logical leap to international
trade.
One of the first known cases of cross-border surrogacy occurred in 1987,
when Alejandra Mu?oz, a 19-year-old Mexican woman, crossed illegally
into the United States to be impregnated with the sperm of her cousin's
husband. Munoz, who was illiterate, apparently believed that she would
only be carrying the fetus for several weeks, after which time it would be
transferred back to her cousin's womb (McEwen, 1999). More recently (and
less contentiously), several British parents, including gay and single men,
have hired US surrogates to bear babies for them. So too have infertile
Australians (and Taiwanese and Kuwaitis) who were unable legally to
employ surrogates at home. Many of these cases occur in California, where
lenient rules allow the contracting parents to be recognized as such at the
time of their baby's birth (Rogers and Harlow, 2001). The total cost of such
trans-oceanic packages is roughly $75,000.
Meanwhile, the components of surrogacy are also traded across bor
ders. Sperm, for example, is a global commodity, with exports of roughly
$50 million to $100 million each year (Zachary, 2000, Bl; Spar, 2004). Eggs
have also recently gone global and surrogates are following closely be
hind, bearing babies with a distinctively cross-national pedigree. In one
recent case, a Japanese woman arranged for her husband's sperm to be
airlifted to the United States, where it was blended with an egg from a
Chinese-American student and then implanted into a Caucasian surrogate
(McEwen, 1999, pp. 286-7). In another, Polish newspapers solicited women
to serve as surrogates for couples in Holland, Belgium and Germany.
The fee was roughly equivalent to two years' average salary in Poland
(McEwen, 1999, p. 287; Corea, 1985, pp. 214-5,245). Similar arrangements
are also cropping up across the Internet, a medium that helps to erase the
information asymmetries so prevalent in surrogacy. On online sites such
as EverythingSurrogacy.com potential surrogates list their availability and
fees, while prospective parents detail their needs and the arrangements
they are willing to make. Other sites, like russiansurrogacy.com specialize
in international transactions; this one offers surrogates from Moscow and
St Petersburg, home, the site announces, to the world's 'most favorable'
surrogacy laws.
If we abstract from the product at hand here, the underlying business
model is eminently reasonable. There is a good - babies - with a strongly
inelastic demand curve. No price is too high for many waiting parents
to pay, and many of these parents have considerable resources at their
disposal (Blank, 1990, p. 15; Hewlitt, 2002). Supply, however, is inherently
more limited, since most women do not want to sell their eggs or lease their
wombs. Moreover, many of the women who will lease their wombs are do
ing so, the record indicates, because they do not have many commercial
300
for centuries without ever being sanctified by either law or morals. What
differentiates surrogacy is the intent and effect of its practice. When people
engage in murder, they intend to do harm. When they steal, they intend
to deny property from its rightful owner. There may well be specific in
stances where either theft or murder are justified in some utilitarian sense,
but societies have decided, again and again, that the possible good effect
of a particular murder is overwhelmed by the almost certainly evil effects
of murder in general. A Kantian framework reaches this same conclusion
even more efficiently. But producing children? The intent in this area is
almost certainly good, or at least very difficult to define as inherently evil.
Effect, to be sure, is tougher. One can argue that the effect of surrogacy
is to demean women who become professional bearers. Indeed, this line
of argument dominates the reasoning of many feminist and Marxist oppo
nents of the practice (Corea, 1985; Overall, 1987; Oliver, 1989). These are
arguments, though, rather than accepted facts. Does paying for pregnancy
demean women? Do surrogate mothers lose dignity in some generalized
way that they themselves cannot even identify? We just do not know. Yes, a
handful of surrogates have later fought for custody of the children they car
ried. Some have subsequently regretted their experience and rallied against
the practice, but in the vast majority of cases, the surrogates appear either
pleased with their contribution, or emotionally unaffected (Andrews, 1995;
Ragon?, 1994, pp. 51-86; Schmukler and Aigen, 1994, p. 244). It is difficult
to demonstrate empirically, therefore, any inevitably ill effects. Similarly,
while one can argue that any imposition of the marketplace into the realm
of reproduction is inherently wrong; that, in the words of Michael Sandel,
'treating children as commodities degrades them as instruments of profit
rather than cherishing them as persons worthy of love and care' (Sandel,
1997, p. 25), this is again an assertion rather than a fact. How do we know
that expensively procured children are any less cherished than those cre
ated for free? If the children of surrogacy do not feel degraded, then by
what right can we claim degradation on their behalf? Once more, the logic
of the argument does not necessarily generate hard, empirical answers.
A similar dynamic surrounds the international effects of surrogacy, ar
guably the most complicated to unwind. Yes, the potential for exploitation
is undeniably heightened by the prospect for international surrogacy. Al
most certainly, the women who act as surrogates will be disadvantaged
relative to the parents they serve; they will be poorer, less educated, and
based in those parts of the world where economic options are substan
tially constrained. Unless one posits, however, that the existence of global
inequality renders all economic choices moot; and until there is any path
by which these inequalities can feasibly be addressed, denying women this
particular choice seems oddly counter-productive. It also does not square
with the kind of logic applied to other areas of the global labor market.
When we worry about working conditions and low wages in the offshore
303
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