Q & A: Conflict Diamonds

Guardian Unlimited writes:

All you need to know about the industry's efforts to shake off the blood-soaked image of stones extracted from the world's war zones.

Where do conflict diamonds come from?
These are stones extracted from rebel-held areas or in defiance of security council resolutions, and used to pay for weapons. The end of several African civil wars has left Ivory Coast as the world's prime source of conflict diamonds. A recent UN report found that rough diamonds were being smuggled out of the rebel-held north and certified for the international market by dealers in Ghana and Mali. The UN experts said that up to US$23m-worth was being smuggled out annually in a trade controlled by the rebel New Forces. Campaigners say this shows there are still crucial gaps in the diamond certification scheme known as the Kimberley process. "These are conflict diamonds, and some of them have gone to Ghana where they're stamped as conflict-free," said Nick Dearden, campaigns manager of Amnesty International.

Congo is another troublespot. Last month, the World Diamond Council, the industry body, said it had received reports of conflict diamonds being smuggled from Congo via Zimbabwe to South Africa where they were certified as legitimate and exported. Zimbabwe's government denies the allegations. Although Liberia's civil war is over, its diamonds are still subject to UN sanctions.

What is the scale of the problem?
Conflict diamonds, chiefly from Congo, Angola and Sierra Leone, made up between 4% and 15% of the global trade when those countries' wars were at their height in the late 1990s. The industry says that fewer than 1% of diamonds on the market now are from war zones. Gemstone revenue has the potential to heal as well as hurt, the industry says, pointing out that Sierra Leone has now been at peace since 2002 and its diamond industry generates $140m in tax and export revenue. But critics say 1% of a $60bn global market is still too much.

A total of 69 countries have now signed up to the Kimberley process, which was meant to stop diamonds being used to fund conflict. Governments have to keep records tracking diamonds from source to their polished form. In theory, this prevents conflict diamonds from entering the supply chain.

Is it ethical to buy diamonds?
Despite bad publicity, a big rock remains synonymous with romance. Retail diamond sales totalled £1.2bn in the UK in 2005, according to industry figures, and sales are rising. One US jeweller has sought to bypass human rights concerns by selling only Canadian diamonds. But both the industry and campaigners say this could hurt some of the world's poorest people.

In countries such as Botswana and South Africa, diamond revenues have paid for schools, roads and clinics. Instead of boycotting diamonds altogether, consumers are being urged to ask retailers whether their diamonds are conflict-free. Alex Yearsley of Global Witness, whose campaigns focus on the corrupt exploitation of natural resources, said: "Consumers have the power to effect industry-wide changes simply by demanding that their diamonds are clean."

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