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As this PP mentioned, once the baby is out there is no need for the placenta and doesn't it start to decay, possibly making it harmful for the baby if still attached?
Some people who have had C/S had chosen lotus birth to ensure that the cord is allowed to completely stopped pulsing on it's own. I know there is at least one person on EB that has done this.
For the most part, it is allowing the cord to stop pulsing and deliver the most blood back to the baby is the only studied and proven benefit. A believed benefit is leaving the mother uninterupted after the birth, and not fussing with the cord for a couple of hours (at least). I think the rest of it is based around more spiritual/intuition and observation.
http://www.mothering.com/pregnancy-birth/b...its-lotus-birthIn my mind, yes, it has done it's job - and most species eat the placenta to regain the nutrients contained in it - rather than carry it around. It was Claire Lotus Day in the 70's who was studying Chimps and (being pregnant) noted that chimps leave the placenta to detach naturally. So she tried it herself.
Very few humans practice placentophagy, and we have moved to a space where it seems 'unnatural' - but, of course, to eat it really would be closer to the natural order of things. (We chose to freeze it and I buried it on DS's first birthday.)
The placenta doesn't decay/rot, because it is rubbed with salt and allowed to dry, just like jerky is (just like the umbilical stump). Next to no smell. Salting it draws out the moisture, which means that bacteria cant grow on it. Clove oil also kills mould etc, so often they are rubbed with that or lavendar oil etc to keep it nice.
Dr Sarah Buckley's experience of Lotus Birth
http://www.motherandchildhealth.com/Prenat...otus_birth.htmlhere's a really good explination
http://www.ehow.com/video_6086828_natural-...otus-birth.htmlfootage of mum curing placenta at home
http://www.youtube.com/watch?v=sGEIl6peVVw