Diamond trade cleans up

Last week, 43 countries announced an embargo on diamonds from the
Republic of Congo.

By Nicole Itano | Correspondent of The Christian Science Monitor

JOHANNESBURG, SOUTH AFRICA � The numbers didn't add up. The Republic
of Congo was sending hundreds of millions of dollars worth of uncut
diamonds to polishing centers abroad. Yet the nation had few known
diamond resources of its own.
The disparity raised suspicions that the country might be a
clearinghouse for conflict diamonds, the illegally mined stones used
to fund African civil wars. When a team of experts dispatched this
May could not adequately account for the extra diamonds, 43 countries
representing 98 percent of the world's diamond trade announced an
embargo on diamonds from the Congo Republic.

   Last week's move - the first time a country has been sanctioned
for illegal diamond trading under a 2003 agreement known as the
Kimberley Process - is a welcome victory in the fight against the
illicit trade, blamed for fueling brutal wars in Liberia, Sierra
Leone, Angola, and Congo. But activists warn that this new approach
still requires some polishing.

"It's a good step forward," said Corinna Gilfillan of Global Witness,
a British-based organization that had criticized the Kimberley
Process for its failure to include a monitoring mechanism to ensure
that countries - both producers and buyers - upheld the
agreement. "This kind of decision shows that there is some monitoring
going on and that once a country was found to be in noncompliance
they were removed from the process."

The journey of an African diamond to a newlywed's finger is a long
and often tortuous one. >From high-security mines in peaceful Botswana
or muddy pits in Congo, the rough, dull stones travel in pockets or
planes through jungles and over deserts, eventually landing in
cutting and polishing centers in New York, Antwerp, and Tel Aviv.
Often, they pass through the hands of several middlemen in different
countries, making it difficult to track their original origin.

When they reach glass display cases in the US - which makes up more
than half of global diamond jewelry retail sales - they all sparkle.
It is impossible to tell which are stained with the blood of African
civil wars.

Under pressure from groups like Global Witness and worried about
growing public awareness of the problem, diamond producing and buying
nations began meeting in May 2000 in the South African diamond
producing city of Kimberley to discuss ways of keeping conflict
diamonds off the market.

"It was important that we made sure that the diamonds that reach the
consumers are conflict-free and assure the consumer that their symbol
of love that is not tainted," says Eli Izhakoff, chairman and CEO of
the World Diamond Council.

Under the resulting agreement, which went into effect in January 2003
and has received UN backing, diamond producing nations agreed to
transport rough diamonds in sealed, tamper-resistant containers and
to certify their origin and that they were mined conflict free.
Diamond-buying countries agreed to purchase only those diamonds with
valid certificates.

The problem, say groups like Global Witness, is that there is no
system for ensuring that all parties uphold their part of the
agreement. As the current chair of the Kimberley Process, Canada
decided to sent the review mission to the Congo Republic and to take
action against them. But future chairs may be less aggressive.

Before the Kimberley Process, the easiest way of smuggling diamonds
was to simply fly them directly to one of the buying and polishing
centers and claim they were from a peaceful country.

Although the new requirement that diamonds have certificates of
origin largely cut off that route, analysts said that many of the
illegal diamonds were simply being rerouted through countries like
the Congo Republic that were issuing false certifications of origin.

"Initially, Kimberley just legitimized the smuggling in [the Congo
Republic]," says Christian Dietrich, a conflict-diamond researcher
for the Belgium-based International Peace Information Service. "To
become a Kimberley member, all you had to do was send them a postcard
with your address and the name of a contact in the Ministry of Mines
and then you became a member. By the middle of last year, you had to
enact domestic legislation that basically would go along the
guidelines of Kimberley. But that was it."

However, the sanctioning of the Congo Republic, says Mr. Dietrich,
shows there is the will to hold countries accountable.

Most of the African wars fueled by diamonds are over or drawing to an
end. Liberian leader Charles Taylor is in exile in Nigeria, Angola is
heading towards elections, and a power-sharing government now rules
in Congo.

But diamond smuggling continues by people who wish to bypass national
taxes or to disrupt peace processes. And questions remain about the
use of diamonds by terrorist organizations like Al Qaeda.

With the removal of the Congo Republic, one door for illegal diamonds
has been closed. But, say Dietrich and Ms. Gilfillan, many more
remain open. Other African countries are suspected of issuing false
certificates, while some polishing centers may be continuing to allow
the importation of uncertified rough diamonds.

"The jury is still out," says Gilfillan. "There still is illicit
trading and other loopholes in other places where diamonds could get
through.... That's why it's so important for there to be continued
review and monitoring."

Reply via email to