Blood And Diamonds Like Oil And Water - They Don't Mix
The international diamond industry continues to be haunted by the connection of its
glamorous product with the appalling atrocities still being carried out through 'blood diamond' activities in some regions of the African continent.
Media accounts covering these atrocities has diminished somewhat in the last couple of years following efforts by the diamond industry to stop the practice. With the help of its own watchdog organisation, The Kimberley Process, the industry has made strenuous efforts to eradicate the trade in illegal diamonds and reclaim public confidence.
Sierra Leone and Angola were infamous producers of conflict diamonds in the 90s and many of those diamonds are still in circulation today. During this time, it is estimated that conflict diamonds represented approximately 4% of the world's diamond production which ultimately funded rebel conflicts in Angola, Liberia, Ivory Coast and the Democratic Republic of Congo in which thousands were slaughtered. Non-government troops carried out atrocities and terrorized local populations to control the diamond mines. Mining was carried out literally at gun-point and the diamonds were then traded for more weapons that further prolonged the conflicts.
The vast majority of diamond trading and producing countries - the European Community and 46 countries in total - are members of the Kimberley Process and are required to implement an import/export control regime to keep out conflict diamonds used to finance conflict and civil wars. This organisation was established in 2003 and only covers the trade in rough diamonds, that is before they are cut or polished. In spite of their strenuous efforts, the process appears flawed, and abuse still occurs.
An international diamond trade statistics review by Global Witness has uncovered evidence of millions of dollars worth of illegal and suspicious trading that is in violation of the Kimberley Process. Global Witness campaigner, Elly Harrowell says, "We have the case of Cte d'Ivoire where diamonds are all mined in rebel held areas and continue to be smuggled out to international markets despite UN sanctions". The United Nations embargo on diamonds from Cte d'Ivoire in place since December 2005, appear to have had little effect on stopping the illegal trade. A UN panel of experts reported in 2006 that US$23 million worth of conflict diamonds were smuggled out of that country, subsequently entering international trading centres due to weak Kimberley Process controls and unscrupulous traders.
Criminal activity connected to conflict and blood diamonds is increasing again as the Kimberley scheme, now in its eighth year, battles to close the loopholes.
The illicit trade in diamonds is not unique to the African continent. Millions of dollars in smuggled conflict diamonds can move with relative ease out of Venezuela, a Kimberley Process member country, into neighboring countries like Brazil and Guyana, where they enter legal channels.
An analysis of the United Nations' (UN) Commodity Trade Statistics (Comtrade) database reveals that an illegal trade in rough diamonds worth $10.2 million may be taking place between Kimberley Process participant and non-participant countries, allowing illicit diamonds to evade regulatory controls aimed at keeping out conflict diamonds. The analysis also identifies millions of dollars worth of suspicious trading in polished diamonds that suggests loopholes through which illicit and conflict diamonds may be entering legitimate channels.
Illicit diamonds are smuggled diamonds that can be used for illegal purposes, such as money laundering and financing terrorism, drug trafficking or other criminal activities.
There is no question that some progress has been made since 2003, but there is now clear evidence that many diamond fields in Africa still remain under the oppression of military control while smuggling, corruption and human rights abuses continue.
These enquiries are on-going but it is extremely alarming to learn that as recently as July 2010 one African country that has been under investigation for years and had its diamond exports stopped, has now been cleared by Kimberley officials and it is likely that diamonds from that source are again about to be released onto world diamond markets. This is even though high government officials were alledged to have personally benefitted financially from the practice, a charge which they unsurprisingly strenuously denied.
Once an illegal stone has entered the retail market it is impossible to avoid contact with it simply because they become impossible to identify.
Even seasoned experts like Harry Levy of the International Diamond Council who has been dealing in diamonds for 40 years, when asked recently if he knew the origins of one of his diamonds said, "There is absolutely no way of knowing where it came from". The Kimberley Process enables him to identify where his stones are cut, polished and traded, but when asked if he was able to identify the source of the mine, he simply said, "I have to rely on the person who sold them telling the truth".
It is unlikely that it would be possible to view an honest and accurate paper-trail of the history of a diamond back to its mine if it came from a conflict region. Guarantees and reassurances may be freely offered - but then you could never be really sure - could you!
Fortunately alternatives do exist to prevent any risk of contact with a 'blood diamond'. 'Today's Diamonds' which is free has more.
by: Garry Lilley
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