Distinguishing Conflict from Legitimate Diamonds

It was in the late 1990s that the notion of conflict diamonds first captured the world’s attention in the course of a brutal conflict in Sierra Leone. For a period of ten years, between 1991 and 2002, the country suffered civil war which left millions of people dead and mutilated. It is in this same place that Osama Bin Laden’s Al Qaeda network has benefited from the sale of diamonds mined by the rebels known as the Revolutionary United Front (RUF). It was not until 1999 that the United Nations established the Mission in Sierra Leone (UNAMSIL) to restore peace with as many as 17,000 troops. Finally in January of 2002, some three years later, Sierra Leone became a democratic country and civil war ended.

Rough diamonds illicitly obtained have also been used by rebels to fund war-torn countries and conflicts in countries such as The Democratic Republic of Congo, Liberia, Ivory Coast, and Angola. These illegally obtained diamonds are particularly common in Central and West Africa.

Conflict diamonds are also popularly known as blood diamonds as popularized by the release of the movie “Blood Diamond.” According to the United Nations, blood diamonds are those that were obtained from areas controlled by factions or groups opposed to a legitimate form of government or a government which is internationally recognized. For most of the time, these diamonds have helped to fund civil wars killing millions in the process. Also, the practice of obtaining these diamonds has exploited children, the labor market, and communities. These diggers are paid less than $1 with hazardous working conditions and living in poverty, terror, and sometimes death.

The profits that were obtained from the selling of these diamonds have been used by warlords to buy ammunition and finance other illegal activities. A classic example is the war in Sierra Leone, Angola, and the Democratic Republic of Congo (DRC), with an estimated death of 3.7 million. Neighboring countries are often used as transit grounds for these blood diamonds. Once in the market, it is often difficult to trace the diamond’s origin, making it nearly impossible to trace its origin once it has been polished. Today, the streams of blood diamonds have been greatly diminished – accounting for less than 1%, but has not been completely eradicated.

What account for this 1% are the three countries that produce these conflict diamonds. These include the Democratic Republic of Congo, Ivory Coast, and Liberia. The DRC has been suspended for non-compliance and as such cannot participate in the Kimberley Process since 2004. To date, there are 71 member countries participating in the Kimberley Process, a UN-mandated system, which certifies diamonds to be conflict-free.

It was in 2001 that the Kimberley Process was created. In November of 2002, 52 countries pledged to adopt the Kimberley Process and its full implementation was not until August 2003. Member countries pledge not to import or export diamonds that are tainted with conflict. The Kimberley Process, however, has been deemed inadequate by most NGOs as it failed to address the issue of child labor, exploitation, violence, and other human rights. Up to the present, the Kimberley Process is in the process of reviews for improvement.

So how can a conflict diamond be differentiated from a legitimate diamond? One effective way of telling is through the “Certificate of Origin.” This certificate ensures that the diamonds that are being sold in the market are those from government-controlled areas. The following are the processes involved in ensuring a conflict free diamond:

First, after the diamonds are mined they are brought to the Government Diamond Offices. Next, sources are checked to ensure that these diamonds are conflict free. If requirements are met, the diamonds are stored in containers and issuance of the Kimberley Process certificate is issued. These certificates have a unique serial number and are validated by the government. It must be forgery resistant and properly labeled with a description of the contents. Importation is only within the seventy-one countries who participate in the Kimberley Process. The customs office of each country will then check for the validated seals and certificates without which diamonds are marked unacceptable, and as such, are impounded by customs or rejected with accompanying crimin    al sanctions. If, however, it passes the inspection, the diamond can now be cut and polished into fine jewelry. This process may take place within several different countries. Each time it enters a new country, there should be a warranty that accompanies it as a certification that the diamond is from a clean source. This is what is called the “System of Warranties.” These warranties are audited and kept in record for five years by the traders or the manufacturers. The part of the retailers would be to ensure that the diamonds they sell and keep in stock all have warranties. Member countries must be able to supply these warranties when asked by an authorized government agency as proof that the supplier is in compliance with the Kimberley Process. Failure to do so will likely result in investigation and could lead to expulsion.

Controls by different member countries have been assured to come up with means of control and transparency in dealing with diamond trade. Stricter sanctions must be implemented with the combined efforts of governments, non-governmental organizations, traders of diamonds, local governments, institutions both in the social and educational systems, and even financial institutions. In 2000, the international diamond industry took steps in partaking in solving the problem by coming up with a resolution which would give the diamond industry more leeway in blocking blood diamonds from being traded in the market. Also, the industry has adopted the voluntary system of warranties to assure consumers that the diamonds they are buying are free from conflict. The United Nations for its part has applied sanctions including a ban on trading of illicit diamonds.

In contrast while blood diamonds have been used to fund conflict, other countries have been using diamonds to build infrastructure, hospitals, and schools, and as a whole, have been able to make use of the diamonds in a way not detrimental to the people and environment.

Other articles of interest:

• Conflict free diamonds at the Oscars
• Creating A World Of Certified Conflict Free Diamond
• Kimberley Process Continues Its Pursuit In Baying Conflict Diamonds