Conflict diamonds are like drugs. They’re illegal, they go hand in hand with violence, cruelty and death, and most importantly, all of them make it to the marketplace. True, they’re just a tiny fraction of the global output of rough – 0.2 per cent by the European Commission’s estimate. And while most conflicts have faded today – with the exception of the Ivory Coast and lingering hotspots in places like the Democratic Republic of Congo (DRC) – the exploitation of poor artisanal diggers and the lack of any benefits to local communities from their mineral wealth are still major issues that need tackling. All those diamonds find their way to market too.
No question of conflict here.
Diamonds from the conflict areas as well as those from places where exploitation is rampant, find their way to the world’s markets by acquiring legitimate papers. And once a diamond is cut and polished, it is indistinguishable from any other. So statistically speaking, no consumer could ever be sure that his or her diamond hasn’t caused somebody terrible suffering – or perhaps even resulted in a death.
Five years ago, I wrote a paper for Partnership Africa Canada (PAC), the non-governmental organisation that was part of the original group that forged the Kimberley Process, profiling the Indian diamond industry and looking at the possibility of whether conflict diamonds were being processed in India. I remember the outrage I encountered for even suggesting the subject. India had no direct import links with Africa and all of its imports came in through official channels, mainly from places like London (the De Beers supply) and Antwerp.
I remember arguing that if however, as India claims, 9 out of 10 rough diamonds are being processed in the country, then statistically it was almost a certainty that some conflict rough was being processed in the country. Today, rough is being sold directly from Africa and from centres like Dubai. China now increasingly cuts more diamonds while many African states are keen on developing their own cutting industries, insisting that a portion of the diamonds mined within their borders stay at home for processing. With rough in such short supply now, commercial pressures make it that much easier for diamonds from dodgy places to acquire legitimacy and wend their way to the international marketplace – and finally perhaps to a jewellery store near you.
Given all of this, it is more important than ever that the international diamond community throw its weight behind initiatives to improve the lot of artisanal diggers and support the Kimberley Process wholeheartedly – because with all its shortcomings, it’s all we have and it has made a difference. There’s a lot more than just that 0.2 per cent and it taints us all.
The luxury industry at work. Image courtesy Gem Diamonds.
Which is why I find the Venezuelan government’s attack on the PAC inexplicable. Venezuela has not filed a single Kimberley certificate in two years, claiming no diamonds have been exported in all that time, when it is clear that there has been rampant smuggling. The Kimberley Process inaction on the subject, perhaps based on the assumption that there is no conflict to deal with, is severely degrading the integrity of the whole process of legitimising diamonds. Read the PAC report on the Venezuelan attack and the KP’s inaction here and judge for yourself. These global rough production charts are interesting too.
As it is, jewellery has a hard time competing with value propositions of today’s high-end consumer electronics. Not only are the gadgets performing wonderful new tricks, they’ve even acquired tags that tell the world their users are cool, sophisticated or trend-setters. The many who slept nights on the pavement in order to be among the first to buy Apple’s iPhone provide a classic example of the almost mesmerising spell technology products have cast on consumers. And Apple doesn’t have to deal with allegations of murky dealings and the exploitation of poor people in some corner of the world.
The international diamond industry needs to make an effort to shake off this curse if it wants to compete and thrive in the marketplace.
