Tuesday, December 19, 2006

As Demand for Adoption Goes Up, So Does its Price

In introductory economics class, all students learn that price of the good in question rises if demand curve shifts rightward. And yes, it applies to child adoption as well.

A story in Wall Street Journal today reported that:

"China, the most popular foreign country for U.S. adoptions, is considering new rules that could disqualify thousands of would-be parents. Those new rules would bar people who are single, obese, over 50 years old, or currently taking psychiatric medications from adopting Chinese children, according to several U.S. adoption agencies that have seen the regulations. They would ban disabled people and families with net assets of less than $80,000. And they would set new minimums on length of marriage for couples seeking to adopt."

Why China would like to revise its adoption policy?

The story continues:

"China says its rationale for a change in rules is simply that it cannot meet the demand of prospective families. Birthrates are falling, and as the Chinese economy booms, fewer parents are abandoning their children due to poverty. A traditional preference for boys appears to be waning, so fewer girls are put up for adoption. And with the recent loosening of China's one-child rule, more families are keeping their second child. The result is that "the number of kids available for international adoption is naturally declining," says Sun Wencan, who runs the adoption department of the Social Welfare Division of China's Ministry of Civil Affairs."

Read the whole thing here.

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