What are Blood Diamonds?

Let’s start with the oblivious, blood diamonds are not diamond which is blood red in colour. Or have some blood inside them! Jokes aside, blood diamond is serious business. You will know this if you have watched the 2006 Hollywood movie on the same subject. Speaking of blood diamonds, it may interest the reader to know that there is the red diamond range, which is a thing in the gem world. This coloured variety of carbon-based gemstone being among the most sought after diamonds in the world. However, when it comes to blood diamonds we are dealing with a different matter and a deeply entrenched problem. Blood diamonds basically deals with diamonds that are traded by parties who use the profits that accrue from it to fund conflicts. The exploitation of a nation’s or region’s mineral wealth to fund wars and other activities that destabilize established governments, and hence the societies they govern, relates to the problem of blood diamonds. Hence the controversy involving blood diamonds is one that is related to the issue surrounding conflict minerals. For someone who is introduced to this particular topic for the first time, these names and terms might seem a bit confusing. So the best way to understand them is to be by clarifying the main characteristics of blood diamonds, and what makes them controversial. 

The Backdrop to Blood Diamonds and Conflict Minerals

The term blood diamonds relates to the kind of trade practices, at the micro-level of the organization, and at the macro level, relating the external activities involving other stakeholders that are harmful to those involved, with the exception of those who are making profits from it. The main characteristic that defines blood diamonds is the role of conflict in their mining and trade. Conflicts, and the broader conflict-oriented environments, and the instability they give rise to, are the catalysts that facilitate the rise of blood diamonds. Since diamonds are mainly sourced from the continent of Africa, notably from unstable parts of Sub Saharan Africa: places where conflicts are rife: from ethnic divisions, regional wars, territorial disputes, all underpinned by the effects of bad governance. A problem that plagues much of the African continent.

Blood Diamonds and the Funding of Conflicts

The specific problem of conflict minerals, like blood diamonds, originate from such unstable areas, where the established government has little to no control when it comes to governance and oversight. Hence non-state actors who are involved in such mining activities, are able to operate freely, without legal or governmental oversight. Further, some of these miners/owners, are those who are supportive of rebel movements and hence direct their profits to fund efforts to overthrow established governments. And these blood diamonds eventually enter the international diamond trade and are sold as legitimate gems. The trade-in blood diamonds or conflict diamonds involves the gemstones that are sourced from areas controlled by rebels and other anti-government militia, that are opposed to an established government, which are recognized by the international community. So the sale of these diamonds and the profits that result from them is used to purchase arms and to fund other military actions, which are used to start or perpetuate conflict.

Blood Diamonds are Obtained Inhumanely

Blood diamonds are gemstones that result from business practices that tend to be characterized by actives that are often harmful to those involved. Such as the workers, who often work in artisanal mines, that tend to dominate the trade in illegal diamonds. The workers, who are often women and minors, who made to endure great hardships and often poorly compensated for the work, and are made to endure the risks of conflicts. Since the non-state actors who are in the business of making money, have little to no consideration for those whom they exploit, which means there is no legal oversight. Combined with their political affiliation towards rebel movements; whose main objective is to attain power at all cost, and tend to have little consideration for the well being of workers.

The Kimberley Process to the Rescue (Or Does it)

The Kimberley Process, which came into effect in 2003 was a major initiative involving key stakeholders in the diamond trade, including leading countries involved in the diamond trade; that was directed towards ending conflict diamonds. The processes and protocols that were put in place to ensure that conflict diamonds did not enter the market, with the notable outcome being the Kimberley Process Certification Scheme which established clear criteria for determining the character of ethical diamonds. Through this scheme, and the other measures taken by the member countries and other stakeholders to chock off the trade of gemstones that are sourced from mines, in regions that are not under government oversight. The result is that at the present over 99 per cent of the diamonds that are traded today are meet these requirements, in contrast to before 2003. This has enabled governments in diamond producing countries to gain greater control over this precious resource. Which have stiffed the profit-making ability of those who trade in blood diamonds, as their supply and logistics have been disrupted by the new standards and restrictions that have been placed on their trade. However, not all is right. Despite these restrictions, there are a number of concerns with the Kimberley Process and its ability to limit the trade of not only blood diamonds but diamonds that are unethical in other areas:

Kimberley Process Does Not go far Enough

Despite the gains made via the advance of the Kimberley Process in limiting the trade of blood diamonds, some critics argue that it doesn’t go far enough in limiting the trade of conflict minerals. Unfair labour practices and human rights abuses, that are not limited to mines operated by warlords and miners who are sympathetic to rebel movements, are usually not factored in determining the ethical character of diamonds. Further, what counts as blood diamonds under the Kimberley Process are gemstones whose profits are sold to fund rebel movements that attempt to overthrow established governments. This means profits from diamonds that are made with little consideration to human health and safety are overlooked. And it also gives too much leeway to state actors, who are effectively protected from sanctions, in cases where their (i.e. government-controlled) diamond mining practices fall short of worker well being. The free pass given to governments is probably one of the reasons why the major diamond exporting nations quickly signed onto the global initiative in the first place. This brings us to arguably the most important aspect of this debate:

The Problem with Corrupt/Unstable Governments

As noted, much of the world’s diamonds originate from countries that are in developing countries in Africa. Countries that are characterized by weak institutional environments: poor infrastructure, weak legal regimes, corruption, lack of political freedoms and poor economic growth. Since diamonds are sourced from such regions, it raises questions about the nature and credibility of the state governments. So the efforts of rebel movements that seek to overthrow these state actors, makes you question the quality of governance in such nations. The Kimberley Process, since it basically assumes that state actors and established governments are acting in legal and ethical ways, their weaknesses in governance and in other areas are overlooked. Further, the potentially unethical practices in the treatment of workers and the appropriation of funds are not considered. For bad state actors, instead of using the profits from the trade of diamonds to build better infrastructure, invest in health and education, they could be using the money to support their corrupt governments, are failing to meet the basics demands of the people. Thus in the most ironic way, even diamonds that carefully follow the dictates of the Kimberley Process might be contributing to the trade in blood diamonds.