The Kimberly Booty: A Comprehensive Analysis of the Diamond Industry

Introduction

The Kimberly Process Certification Scheme (KPCS) is a joint initiative between governments, industry, and civil society to ensure that diamonds are not used to fund conflict. Established in 2003, the KPCS has been instrumental in reducing the flow of conflict diamonds, resulting in increased transparency and accountability in the diamond industry.

The Extent of the Problem

According to the United Nations, conflict diamonds accounted for up to 15% of the global diamond trade in the 1990s. These diamonds were mined in war zones and used to fund armed groups, perpetuating conflict and human rights abuses.

Table 1: Estimated Value of Conflict Diamonds

The Kimberley Process Certification Scheme

The KPCS was established to address the issue of conflict diamonds. The scheme requires participating countries to implement the following measures:

• Establish a national certification system for rough diamonds
• Implement internal controls to prevent conflict diamonds from entering the legitimate trade
• Exchange data on diamond exports and imports
• Suspend participation of non-compliant countries

Benefits of the Kimberley Process

The KPCS has played a significant role in reducing the flow of conflict diamonds. The following are some of its benefits:

• Increased transparency: The KPCS requires participants to disclose information about diamond production, exports, and imports. This has made it more difficult for conflict diamonds to enter the legitimate trade.
• Reduced funding for conflict: By preventing the sale of conflict diamonds, the KPCS has made it more difficult for armed groups to finance their activities.
• Improved human rights: The KPCS has helped to improve human rights in diamond-producing countries by reducing the incidence of conflict and forced labor.

Challenges Facing the Kimberley Process

Despite its success, the KPCS faces a number of challenges. These include:

• Limited scope: The KPCS only applies to rough diamonds. This means that conflict diamonds can still be smuggled into the legitimate trade through other channels.
• Verification difficulties: It can be difficult to verify whether diamonds are conflict-free. This is especially true in countries where there is a history of conflict and instability.
• Lack of enforcement: Not all participating countries fully comply with the KPCS requirements. This can undermine the effectiveness of the scheme.

Effective Strategies for Addressing the Challenges

The following strategies can help to address the challenges facing the KPCS:

• Expand the scope of the KPCS to include polished diamonds and other diamond products.
• Develop new verification methods to improve the accuracy of conflict-diamond identification.
• Increase enforcement of the KPCS requirements by imposing sanctions on non-compliant countries.

How to Step-by-Step Approach to Conflict-Free Diamonds

Consumers can play a role in supporting the KPCS by purchasing diamonds that are certified conflict-free. Here is a step-by-step approach:

• Ask your jeweler for a certificate of origin. This certificate should state that the diamonds were mined in a conflict-free country and that they comply with the KPCS requirements.
• Look for diamonds that are certified by a third-party organization. Several organizations provide certification programs that ensure that diamonds are conflict-free.
• Consider purchasing diamonds from a reputable jeweler. Reputable jewelers will only sell diamonds that are conflict-free.

Why the Kimberley Process Matters

The KPCS is an essential tool for preventing conflict diamonds from entering the legitimate trade. By reducing the flow of conflict diamonds, the KPCS has helped to improve human rights and promote peace in diamond-producing countries.

Call to Action

Consumers can support the KPCS by purchasing diamonds that are certified conflict-free. This simple act can make a real difference in the lives of people in diamond-producing countries.

Additional Resources

• Kimberly Process Certification Scheme
• United Nations Security Council Resolution 1306
• World Diamond Council

Appendix

Table A: Participating Countries in the Kimberley Process

|Country|Year of Joining|
|---|---|
|Australia |2003|
|Botswana |2003|
|Brazil |2003|
|Canada |2003|
|Central African Republic |2003|
|China |2003|
|Congo, Democratic Republic of the |2003|
|Côte d'Ivoire |2003|
|Ghana |2003|
|Guinea |2003|

Table B: Diamond Production by Country (2021)

Table C: Diamond Consumption by Region (2021)