1. Tracing the Path of Conflict Diamonds

2. What are diamonds?
Formed miles below the earth’s surface: heat and pressure
Concentrated in Africa (about 50% of world production)
Hundreds of millions of years old

3. The Origin of the Diamond Mystique
First mined in India; earliest written reference is from 4th century BCE
Became popular among European royalty starting in the 13th century
Extremely rare until about 1870, when huge diamond deposits were discovered in South Africa

4. De Beers and the Marketing of Diamonds
1870s: huge diamond deposits discovered in South Africa (then a British colony)
Cecil Rhodes buys diamond fields and creates De Beers Mining
De Beers rapidly takes over nearly all diamond mines in South Africa

5. Marketing diamonds: manufacturing scarcity
Goods are expensive if they are scarce – i.e., the supply is limited
Diamonds aren’t actually scarce – so De Beers acted to create scarcity
Enabled by its monopoly over diamond supply, De Beers restricted the flow of diamonds onto the market, enabling it to keep prices high

6. Marketing diamonds: maintaining a monopoly
De Beers aggressively moved to win a monopoly over diamond mines
Monopoly allowed De Beers to keep prices high

7. Marketing diamonds: creating demand
De Beers also aggressively marketed diamonds
“A Diamond is Forever” – 1947 marketing campaign
Diamond engagement rings – popularized by the end of the 1950s

9. So what are conflict diamonds?
Thanks to these tactics, selling diamonds is extremely profitable
In some African countries – Angola, Congo, Sierra Leone – rebels illegally mine diamonds and sell them to pay for weapons

10. How do conflict diamonds fuel war?
Impact on fighting: sold for funds that allow wars to continue
Impact on civilians: thousands of ordinary people are used as slaves to mine diamonds

11. Conflict Free Diamonds?
Small and easy to transport = difficult to track
Conflict diamonds mixed with conflict-free diamonds
Almost impossible to know the true origins of a diamond

12. The Kimberley Process
Introduced in 2003 by governments and the diamond industry
Attempts to eliminate trade in conflict diamonds
Government: must certify diamonds as conflict-free before they can be shipped
Industry: agrees to certify diamonds as conflict-free on invoices
Possible shortcomings?