Conflict Diamonds and the Role of the United States Government Catherine Picard. Ph.D. Bureau of African Affairs U.S. Department of State

Why is State Department interested in diamonds? Economics Economics Security Security Development Development

Diamond Statistics

“My neck leash was funding a rebellion…” “Conflict diamonds” are defined as rough diamonds used by rebel movements or their allies to finance armed conflicts aimed at undermining legitimate governments. “Conflict diamonds” are defined as rough diamonds used by rebel movements or their allies to finance armed conflicts aimed at undermining legitimate governments. During 1990s, 4%-15% of rough diamonds During 1990s, 4%-15% of rough diamonds Angola, Sierra Leone, Liberia, DRC Angola, Sierra Leone, Liberia, DRC U.S. Diamond Trade Act U.S. Diamond Trade Act

Getting to Kimberley: Advocacy Campaigns Advocacy Campaigns Industry buy in Industry buy in Governments join Governments join UNGA mandates negotiations UNGA mandates negotiations KP goes “live” in 2003 KP goes “live” in 2003

KP Requirements – More than a piece of paper?

The KP in Practice 80 countries + observers 80 countries + observers “Voluntarily mandatory” “Voluntarily mandatory” Decision-Making Decision-Making Governance Governance Administrative Support Administrative Support

Enforcement Tackle illicit cross-border trade Tackle illicit cross-border trade Share information Share information Training Training Focus on Artisanal Production Focus on Artisanal Production Illegitimate financing = Illegitimate diamonds

Challenges Definition of a Conflict Diamond Definition of a Conflict Diamond  Enforcement  Sourcing  Beyond rough?

KP Concerns Decision-making processes Decision-making processes Definition Definition Internal Controls Internal Controls Staffing/Secretariat Staffing/Secretariat “Unfunded Mandate” “Unfunded Mandate” Political and economic dimensions Political and economic dimensions

Artisanal Diamond Concerns Legal Rights Legal Rights Child Labor, Environmental and Fair Trade Child Labor, Environmental and Fair Trade Rough vs. Cut and Polished Diamonds Rough vs. Cut and Polished Diamonds Exploitation Exploitation Post-Conflict Vulnerabilities Post-Conflict Vulnerabilities

Reforming the KP The definition The definition Monitoring & Enforcement Monitoring & Enforcement Addressing non- compliance Addressing non- compliance Decision-making Decision-making Artisanal Sector Artisanal Sector

USG Engagement Kimberley Process Kimberley Process USAID USAID U.S. Geological Survey (USGS) U.S. Geological Survey (USGS) Census Census Treasury (OFAC) Treasury (OFAC) United Nations United Nations Multi-stakeholder fora (OECD) Multi-stakeholder fora (OECD)