The Solutions

"I missed the opportunity to see the dirty laundry of the diamond world publicly aired. The practice of selling rough stones outside of boundaries of established taxing and exporting structures for the sake of funding insurgencies against legitimate African Governments was well established and accepted by the diamond-producing and -importing countries of the world, but it was NEVER, EVER discussed in public."
                                                                                Greg Campbell, Author of Blood Diamonds
By: Matt Skabelund

Conflict diamonds have been a problem in West Africa for some time. Diamonds in West Africa come very easily; the countries are permeated with diamonds that have been both a blessing and a curse. More so a curse in recent years, with wars between different factions and groups ravishing the country and governments of the countries not doing much to stop the conflict diamonds but more to control the conflict diamonds for themselves. Though each situation is different and implications due to involvement have kept some countries from doing anything to help these war-ridden countries, steps have been taken to create a conflict-free diamond market.

The United Nations Security Council began attempting to stop the flow of conflict diamonds in the early 1990’s by imposing sanctions and embargoes on country of Angola and more specifically the National Union for the Total Independence of Angola(UNITA). The main embargo was on the imports of arms, in hope that it would end conflict in Angola. This was just the first of many resolutions established by the Security Council. After many embargoes and resolutions the Security Council established what is called a Monitoring Mechanism because of UNITA’s failure to comply with any of the resolutions the Council had set up.  The Mechanism was a panel of experts that kept a close eye on the actions of the UNITA. As of today the UNITA has been reduced from a rebel group to a political party.

Blood Diamonds by National Geographic by hushhush112

The United Nations Security Council also initiated similar embargoes and sanctions on the countries of Sierra Leone and eventually Liberia. Over the course of a decade the Security Council had placed sanctions and embargoes on three countries associated with conflict diamonds. This helped with the diamond trade but hasn’t eliminated them from the legitimate diamond market.

                Although these embargoes were better than nothing, after a report from Global Witness about conflict diamonds, meetings began being held in Kimberley, South Africa about stopping the flow of conflict diamonds. In January of 2003, the Kimberley Process was launched. The Kimberley Process is an import-export documentation scheme in which participating governments to certify the origin of rough diamonds and put in place effective controls to prevent conflict stones from entering the supply chain. Although the Kimberley Process was thought to be able to stop the flow of conflict diamonds, diamonds supporting rebel groups are still getting into the market.

                The smuggling of illegal diamonds is an issue that spans across many nations and governments; it affects different areas covering from Human Rights to effects of the global economy. Innocent people have cried and pleaded for help from the local government, their nation’s government and global leaders throughout the world. Unfortunately the response from most was indifferent at best. In a war claiming thousands and thousands of lives, it makes a person wonder why governments from other countries haven’t stepped in to help these ravished countries. The United Nations Security Council did step in, but many wonder if their sanctions and embargoes have done much. With the adoption of the Kimberley process many hoped that this would end the trade of illegal diamonds, though it has helped, corruption with government officials who have helped to initiate the Kimberley process continues to aid the trade of conflict diamonds. Only when the ethics and morals of people enforcing that process change will the end of conflict diamonds come. Until then African countries will continue to war-ridden with little help from outside countries mainly because of their interest in the diamond market. A sad thing when the worth of one diamond outweighs a human life.

CONFLICT DIAMONDS AND THE KIMBERLEY PROCESS FACT

SHEET

(Fact Sheet Created by worlddiamondcouncil.org)

What are ‘conflict diamonds’?

‘Conflict diamonds’ is the term used to describe diamonds which are illegally traded to fund

conflicts. In recent times, conflicts in some of the poorest parts of Africa have often focused on

rebels controlling their country’s natural resources and assets; for example, oil, wood, minerals

and also diamonds. The United Nations (UN) defines conflict diamonds as ‘…diamonds that

originate from areas controlled by forces or factions opposed to legitimate and internationally

recognized governments, and are used to fund military action in opposition to those

governments, or in contravention of the decisions of the Security Council’. Conflict diamonds

came to the attention of the world media during the extremely brutal conflict in Sierra Leone in

the 1990s. While Sierra Leone is now at peace, currently, the Ivory Coast remains under UN

Security Council sanctions prohibiting the import and export of diamonds.

How many diamonds are conflict diamonds?

Currently, less than 1% of the world’s diamonds are conflict diamonds. In the late 1990s,

conflict diamonds represented a very small percentage of the world’s diamond production

(approximately 4%).

How does the diamond industry ensure conflict diamonds are not in the pipeline?

The brutal conflict in Sierra Leone in the 1990s brought conflict diamonds to the world’s

attention. The UN, governments, the diamond industry and NGOs (such as Global Witness,

Amnesty International and Partnership Africa Canada), recognised the need for a global

system to prevent conflict diamonds from entering the legitimate diamond supply chain and

thus helping to fund conflict.

A simple process called the Kimberley Process was agreed in which rough diamonds are

sealed in tamper-resistant containers and have a forgery resistant conflict free certificate with

unique serial numbers each time they cross an international border. This process ring-fences

conflict diamonds in order to prevent them from entering the diamond supply so that they do

not fund any rebel groups. Governments of the exporting and importing countries are

responsible for checking all Kimberley Process certificates.

In addition, the diamond industry has agreed to provide evidence to all purchasers in the

chain, from when diamonds are imported with a Kimberley Process certificate to the point of

sale to the consumer, that the diamonds being sold are from conflict free sources. This

involves a written statement on all invoices declaring that the diamonds are from a conflict free

source which is referred to as the ‘System of Warranties’.

While, today more than 99% of rough diamonds are certified to be from conflict free sources,

the diamond industry has a zero tolerance policy towards conflict diamonds and will not rest

until conflict diamonds are completely eradicated.

What is the Kimberley Process?

The Kimberley Process is a unique joint initiative involving governments, the international

diamond industry and NGOs to stem the flow of conflict diamonds. Progress to achieve this

shared objective began in May 2000 and by December 2000, all 191 members of the United

FOR MEDIA USE

Nations General Assembly voted unanimously to support the process. This was the first time

that a global industry had cooperated with the United Nations, governments and civil society to

address an important humanitarian issue.

By the beginning of 2003, 52 Governments had agreed to the Kimberley Process Certification

Scheme and adopted it as national law. In essence, participants agreed to only allow the

export and import of rough diamonds between other countries in the Kimberley Process and

countries in conflict were barred from becoming a member.

Today (as of August 2007), 74 countries, including Sierra Leone, are members of the

Kimberley Process, ensuring that more than 99% of the global production of rough diamonds

are now certified to be from conflict free sources.

How does the Kimberley Process work?

•

The Kimberley process requires that:

1. Each shipment of rough diamonds crossing an international border must be:

a. Transported in a tamper-resistant container

b. Accompanied by a government-validated Kimberley Process Certificate

2. Each certificate must be resistant to forgery, uniquely numbered and describe the

shipment’s contents

3. The shipment can only be exported to another Kimberley Process participant country

4. The importing country’s customs have a responsibility to check the contents of the

shipment with the Kimberley Process certificate.

• It is illegal for uncertified shipments of rough diamonds to either be imported or exported

by a Kimberley Process participant country. Failure to comply with these procedures can

lead to confiscation or rejection of parcels and/or criminal sanctions.

• If any concerns arise regarding a country’s adherence to the Kimberley Process, they are

investigated and dealt with at an intergovernmental level.

What is the System of Warranties?

The World Diamond Council and all its members have agreed to provide evidence to all

purchasers until the sale to consumers that the diamonds being sold are from conflict free

sources. This involves a written statement on all invoices making a declaration that the

diamonds are from a conflict free source which is referred to as the ‘System of Warranties’.

Under this, ‘System of Warranties’, the following affirmative statement must be provided on all

invoices:

“The diamonds herein invoiced have been purchased from legitimate sources not involved in

funding conflict and in compliance with United Nations resolutions. The seller hereby

guarantees that these diamonds are conflict free, based on personal knowledge and/or written

guarantees provided by the supplier of these diamonds.”

All members of the trade who provide such assurances have promised to keep records with

this statement on them, therefore providing evidence that their diamonds are from conflict free

sources. All warranties, whether from a supplier or a customer must be audited and reconciled

on an annual basis by the company’s own auditors. If asked for by an authorised government

agency, these records must be provided and are proof of compliance with the Kimberley

Process.

What benefits do diamonds provide to the countries where they are sourced?

FOR MEDIA USE

As a major natural resource, diamonds are contributing to the transformation of Southern

Africa and the lives of its people. Countries such as Sierra Leone are now in the process of

establishing a lasting peace through political and democratic means and diamonds are helping

to build that structure.

Additional sources of information

Diamond Facts www.diamondfacts.org

US Media Contact

866-490-8855

usmedia@diamondfacts.org

International Media Contact

44-207-878-3114

intlmedia@diamondfacts.org

FOR MEDIA USE

 

What is the Kimberley Process?

By: Global Witness

The Kimberley Process Certification Scheme (Kimberley Process or KP) is an international governmental certification scheme that was set up to prevent the trade in diamonds that fund conflict. Launched in January 2003, the scheme requires governments to certify that shipments of rough diamonds are conflict-free.

How did the Kimberley Process begin?

In 1998, Global Witness launched a campaign to expose the role of diamonds in funding conflict, as part of broader research into the link between natural resources and conflict. In response to growing international pressure from Global Witness and other NGOs, the major diamond trading and producing countries, representatives of the diamond industry, and NGOs met in Kimberley, South Africa to determine how to tackle the blood diamond problem. The meeting, hosted by the South African government, was the start of an often contentious three-year negotiating process which culminated in the establishment of an international diamond certification scheme. The Kimberley Process was endorsed by the United Nations General Assembly (UNGA) and the United Nations Security Council (UNSC) and launched in January 2003.

How does it work in practice?

The KP is an import-export certification scheme which requires participating governments to certify the origin of rough diamonds, and put in place effective controls to prevent conflict stones from entering the supply chain. Participant countries must enact domestic legislation to implement the scheme, and can only trade rough diamonds with other members. This creates a strong incentive for countries that want to produce, trade or process uncut stones to join. As of 2010, there are 75 governments participating in the KP.

The KP’s technical provisions are implemented by governments, but its tripartite structure means that non-governmental organisations and the diamond industry hold official status as observers and take part, along with member states, in all working groups and decision making processes.

Is the Kimberley Process working?

The Kimberley Process has chalked up some notable achievements in the past ten years, including pioneering a tripartite approach to solving international problems, and helping some of the countries that were worst-hit by diamond-fuelled wars to increase their official diamond revenues. However, member governments have repeatedly failed to deal effectively with problem cases such as Zimbabwe, Côte d’Ivoire and Venezuela. Despite the existence of the Kimberley Process, diamonds are still fuelling violence and human rights abuses. Although the scheme makes it more difficult for diamonds from rebel-held areas to reach international markets, there are still significant weaknesses in the scheme that undermine its effectiveness and allow the trade in blood diamonds to continue.

How can the KP be improved?

The KP will not achieve its aim of stamping out diamond-fuelled violence for good without the introduction of far reaching reforms or a serious injection of political will.

Human rights – breaking the links between diamonds and human rights abuses was one of the founding principles of the Kimberley Process – the scheme’s founding document notes the “systematic and gross human rights violations” associated with the diamond trade. However, many participants in the scheme argue that human rights fall squarely outside the KP’s remit. Global Witness is campaigning for the KP to clarify and strengthen its commitment to human rights, or risk losing the trust of consumers and the diamond mining communities it was set up to protect.

Independent technical capacity – despite the fact that the KP has 75 member countries, it has no permanent secretariat, no funding and no central repository of knowledge or ongoing institutional capacity. This has led to a lack of continuity between chairmanships – the KP chair rotates amongst the member countries on an annual basic – insufficient monitoring and a slow response to crisis situations. The KP doesn’t have the capacity to consistently and effectively follow up on issues of concern. The Kimberley Process needs a professional, independent technical body to support progress on administrative matters, monitoring, and statistical and legal analysis.

Decision-making – Consensus decision-making means that one participant can block progress on key issues. The KP has been unable to take strong decisions to crack down on cases of serious non-compliance. This inability to hold members to account for rules of the scheme undermines its effectiveness and its credibility in the eyes of consumers and participants. Global Witness is calling on the KP to replace its decision-making procedure with a more effective system.

These reforms will never be carried out in the absence of serious renewal of political will on the part of KP member governments and the diamond industry. As the issue of conflict diamonds slips down the agenda of many participant governments, the KP risks becoming little more than a talking shop, with some members content to put in minimal effort and free ride on this pioneering conflict prevention scheme.

Global Witness is committed to pushing governments to fully implement the scheme, to hold rule breakers to account, and to introduce reforms that will ensure the KP remains effective and credible over the next 10 years.
  Capitalism is an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth. Capitalism is also something that most of the world sees as a valid and effective way of running business, but is it?

   Capitalism operates on producing a good or a service for a price but that price isn't always monetary. Sometimes that price is cheap labor, bad wages and blood. When speaking about the diamond industry it's rarely missed that many diamonds have been funding insurgencies and rebel groups in attacking legitimate governments. These wars have plagued West Africa for many, many years, governments have failed to step in and attempt to stop these wars because of capitalism. Many countries ignored the problems in Sierra Leone and other African countries because of the thoughts of negatively impacting the diamond industry and capitalism. 

"As cold as the company's response to publicity about conflict diamonds sounds-- the potential commercial loss is "enormous but the moral dimension is merely "big",as if it were an afterthought-- De Beers is at least consistent in it's thinking.Very little, if anything, has been done in the company's lifetime that didn't further its commercial potential, even if it meant funding warfare to do it. Before the conflict-diamond issue gathered steam, it made economic sense to continue to trade with killers since no one was paying attention and it didn't threaten the demand for the goods after the issue began attracting the attention of the human-rights organizations and the people started whispering the dreaded "B" word(boycott), it made economic sense for the industry to wash its hands for good. Since De Beers is the world's largest dealer in rough diamonds, not only was a great deal of responsibility placed at its feet in early 2000, but so were many expectations that the company would act swiftly to end the practice."

                                                                                                              Greg Campbell, Author of Blood Diamond

Although capitalism has worked for many countries as an effective way of handling business, when it comes to the African people and the diamond industry it has been a destructive and bloody institution. 

 So in conclusion, the diamond market and capitalism hasn't been helpful when it comes to 

saving lives in Africa.