Tracing the Path of Conflict Diamonds

What are diamonds? Formed 75-120 miles below the earth’s surface: heat and pressure Concentrated in Africa (about 50% of world production) Hundreds of millions of years old

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

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

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

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

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

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

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

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

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?