Top: Business: Retail Trade: Loose Diamonds: Blood Diamonds


[ history ]

Blood Diamonds within the Business

As the name signifies, conflict or blood diamonds are those diamonds that are sold to fund illegal operations of rebel and terrorist groups. History indicates that these diamonds are most commonly mined in war zones and areas of unrest. The sales are often conducted secretively and the money generated goes into funding the activities of unlawful groups. While the sales of these dirty diamonds or war diamonds is recorded to be less than 2%, and most nations engaged in trade of conflict diamonds have faced UN sanctions, there are still loopholes and much can be done to help customers take better decisions. Certification systems are in place today and experts provide comprehensive information on how to stop the trade of conflict diamonds.

History

The first recorded instance of blood diamonds occurred in 1998, when the United Nations identified that Angola was mining diamonds for funding unjust purposes. Later on Sierra Leone, Liberia, Ivory Coast, the Democratic Republic of the Congo and the Republic of the Congo were also seen to engage in the trade of illicit diamonds. As peace reigned in these regions, they now have legitimate diamond mining industries. However these instances brought to light a serious issue and brought the diamond industry together to put in place a system through which the origin of diamonds could be certified. For the first time in the middle of year 2000, the World Federation of Diamond Bourses and de Beers, collectively designed a process for controlling the trade of conflict diamonds. The conference also devised means to assure buyers that the diamonds they purchased were not funding illegal activities.


International level certification system

In 2000, the World Diamond Congress put in place a certification system at the international level. As per this system, which certifies the import and export of diamonds, all nations must accept only sealed packages of diamonds. Those found guilty of trafficking blood diamonds would pose criminal charges and would be banned from the diamond bourses that together constitute the World Federation of Diamond Bourses. In 2001, the World Diamond Council was formulated to control the process of mining and selling diamonds. In 2002, the Kimberly Process Certification Scheme (KPCS) was finally set up. This system bettered from other systems as it enhanced the transparency of governments by forcing them to maintain records.

Loopholes in the system

While the KPCS has emerged after years of discussion and debate, the system still has its loopholes. Any diamond organization can easily become a member, whether they meet the standards or not. The system involves the cooperation of various governments and non government bodies, a need that has made it difficult for the agreement to be fully operational. There are also many nations that have not committed to the requirements of the program, an aspect that creates a major roadblock in progress.


How traders can help in stopping conflict diamonds

Due to the loopholes in the system, many conflict diamonds also get past as clean diamonds. In order to make the process more stringent, the power finally lies in the hands of the customer. A little caution and the following pointers can help consumers ensure that their diamonds are not conflict diamonds.

* Demand the proof that diamonds you buy are conflict-free. Ask for ‘Certificate of origin'- certification that states that diamonds have come from conflict-free zones only. The voice of the customer can send across the strong message that conflict diamonds will not be tolerated.

* Make your purchase from established traders with years of expertise. Bigger organizations follow stringent quality procedures and have lesser chances of selling conflict diamonds. Responsible retailers always have policies in place for ensuring the sources of their stones. Enquire about their buying policies.

* Trade with organizations that are anti-conflict diamonds. A list of such dealers can be availed from the World Council of Diamonds. You can also ask the salespeople at the store whether their diamonds are conflict free or not.

* Finally read more about the issue of blood diamonds and how the trade wrecks the lives of so many. It would surely touch your heart and help you take the constructive step forward.

While the trade of conflict diamonds has been strictly controlled due to stringent systems, such trades do exist and only collective action can help. Not only do miners and retailers need to show more responsibility, customers also need to voice their opinions and stop the unjust actions. Take your diamonds from established vendors who strongly support the cause of non conflict diamonds.



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