Organ trade

Organ trade is the trade involving human organs for transplantation. It is a business driven by the simple market calculus of supply and demand. General belief is that there is a worldwide shortage of organs available for transplantion. However, considering the predictions of economic theory and analysis of empirical data, the shortages are believed to be the result of government restrictions upon organ trade.

Legal organ trade
In the 1970s pharmaceuticals  that prevent organ rejection  were introduced. This along with a lack of medical regulation helped foster the organ market. Living donor procedures include kidney, liver, cornea and lung transplants. Most organ trade involves kidney or liver transplants.

Before legislation passed in 1994, India had a successful legal market in organ trading. Low cost and availability brought in business from around the globe and transformed India into one of the largest kidney transplant centers in the world. Several problems began surfacing during the period of legal organ trade in India. In some cases patients were unaware a kidney transplant procedure even took place. Other problems included patients being promised an amount much higher than what was actually paid out. Ethical issues surrounding contribution donating pushed the Indian government to pass legislation banning the sale of organs.

In China, organs are often procured from executed prisoners. Nicholas Bequelin, a researcher for Human Rights Watch, estimated that 90 percent of organs from China are from deceased prisoners. China still suffers a shortage of organs for transplant even with more lax regulation.The Chinese government, after receiving severe scrutiny from the rest of the world, has passed legislation ending the legal sale of organs. However, no legislation currently prohibits the collection of organs from deceased inmates who sign agreements before execution.

In Iran the practice of selling one's kidney for profit is legal. Iran currently has no wait lists for Kidney transplantation. Kidney sales are legal and regulated. The Charity Association for the Support of Kidney Patients (CASKP) and the Charity Foundation for Special Diseases (CFSD) control the trade of organs with the support of the government. The organizations match donors to recipients, setting up tests to ensure compatibility. The amounts paid to the donor vary in Iran but the average figures are $5000-$6000 for kidney donation. Employment opportunities are also offered in some cases. This legal trade has not been complication free but it has eliminated the waiting list for kidneys in Iran.

Illegal organ trade
Poverty and loopholes in legislation contribute to the illegal trade of organs. Poverty is seen in all countries with a large black market for organs. This, however, is not the only factor affecting the flourishing illegal markets. Some of the poorest countries in the world do not have organ trade. Legislation is another contributing factor in the organ black market. In Jordan, organ trade is illegal but in many cases organ donors are brought into Iran from Jordan to perform procedures. India’s Transplantation of Human Organs Act (THOA) requires that an organ donor must be a relative, spouse, or donating for reasons of “affection”. No monetary transactions for organs are legal in India currently but there are no laws concerning funds given to a spouse. The spousal inclusion provides a loophole for illegal trade; in some cases contribution donors simply marry the recipient to avoid legal penalty.

Illegal goods are often high priced and unstable in the black market. The amount a donor would receive for a kidney ranges from $800 to $10,000 or more. Liver donors see similar returns. Many economists encourage the creation of legal framework to allow organ trade not only to eliminate the organ shortage but also to help dissolve the corrupt illegal market.

Economics
The illegal status of organ trade creates a price ceiling for organs at zero dollars. This price ceiling affects supply and demand creating a shortage. In theory the elimination of the price ceiling would eliminate the shortage. It is estimated that in America, if 0.06% of individuals aged 18-65 donated a kidney that the waiting list for organs would be fulfilled. Currently with little incentives to donate an organ approximately 6,000 people die yearly waiting for a transplant organ. For every individual taken off the waiting list two more are added. The regulation of organ trade could solve the organ shortage and create safer and fair practices for donors.