The Present State of Blood Diamonds in 2021

The term ‘Blood Diamond’ in the popular imagination was popularized by the movie of the same name. That some of you may have watched (or at least heard of), box-office thriller: Blood Diamond that was released in 2006: Starring Leonardo DiCaprio, Jennifer Connelly, and Djimon Hounsou. A film which follows the political instability in the African nation of Sierra Leon and regional conflicts it gives rise. Focusing on the illicit trade in precious stones: from the illegal mining and trade of diamonds. A process which involves warlords; forced labour, including the capture training and exploitation of minors for war child; the ruthless search for profits much of it built on the bloody exploitation of a natural resource, that operates across State lines. One that feeds greed, the exploitation of the weak and war. Blood Diamonds.

What are Blood Diamonds

The term ‘diamond’ comes from the Greek word ‘adamas’: which means invisible. Diamond is the hardest natural substance in the world. This solid carbon formation has come to fascinate and inspire many over thousands of years. And given its great worth, it is naturally sought after for its high value. The idea of blood diamonds relates to conflict minerals. Which according to the UN are understood to be diamonds (and other precious stones) that originate from areas controlled by forces or factions that are opposed to legitimate governments-which in practice, relates to state actors who are recognized by international governing bodies-where the profits from the trade of these minerals are used to fund wars and other conflicts in the region. Conflicts which are not sanctioned or deemed justified by UN’s institutions (1).

A key problem that underlies the trade in conflict minerals is the people who are caught in the midst of it. In addition to those who suffer from wars and forced migration resulting from these regional conflict. Often, in these war-torn regions, where legitimate States have little authority over their areas of governance. Hence non-state actors, many of them armed militias, enter the vacuum to enact a form of militant governance. Without the restraints of conventional governments, these militants come to exploit the locals. Most of them, innocent people, including children, who are forced to work for these illegal traders. Either as a result of desperation, but often many who are forced into virtual slave labour. Working for meagre payments, In the case of diamond mines, they are made to slave for long hours extracting these precious stones. Often times this is done without the aid of sophisticated diamond mining tools, with untrained miners left to dig with their bare hands. It is important to note that the trade in blood diamonds are not limited to diamonds alone. Profiting from conflict minerals also extends into other areas like illegal mining and trade of iron ores.

The Role of Conflict in the Diamond Trade

Africa is one of the major sources of diamonds in the world. As the continent that is home to some of the largest and most lucrative diamond mines in the world: With countries like South Africa, Botswana leading the way, and with newer potential diamond fields being unearthed in countries like the DRC (Congo); the wealth potential an ever-expanding one. Given its history, this region is also a place where many of the world’s conflicts are taking place. From civil wars, regional conflicts, tribal divisions, and religious extremism to name a few. One of the main consequences of incessant wars is the destabilising effects it has on the sociopolitical character of the respective nations where they take place. Which involves nearly almost all countries in Africa. With the Sub Saharan Africa being an epicentre for this instability.

The problems that rake this region are two-fold (as a start). First, as noted, the incessant conflicts in the region, feed geopolitical instability. As many of these regional wars, start out as internal conflicts between various power players within states. That then spills over into neighbouring nations. Which are also often raked by instability themselves. Second, conflicts between major nations over land and resources feeds internal stability within the areas of governance. As resources and manpower are directed towards fighting foreign threats, rather than dealing with internal issues like infrastructure, health, security etc. A notable example is the enduring wars between North and South Sudan (mainly over oil). As one can see, the problems with regional and local instability and conflict are interconnected.

A notable case in relation to the ill-effects of the blood diamonds and regional conflict can be understood in relation to the nation of Sierra Leone. Following the entry of the mining giant De Beers in 1935. Which controlled the mining operations in-country, that was at the time under British control. Having gained independence from Great Britain Sierra Leone, like many post-colonial nations in Africa, had a weak institutional environment. Where the central government did not have the strength or the scope to effectively govern all parts of the country. Which led local power players to emerge: From militias to illicit business practices, whose works were not overseen by the State.

A key group were the artisanal miners: diamond miners who did not have the capital or machinery to carry out large scale mining efforts. With the British out, the country’s political environment broke down, with single-party governments, like those of Siaka Stevens, who ruled the country for seventeen years. As prime minister he nationalized the local branch of De Beers diamonds, putting Lebanese businessman Jamil Mohammed in charge, with him in a key role of the mining operation. At the same time encouraging illegal mining operations. This was combined with poor governance and the weakening of its institutions. Which led to a fall in diamond output from legal operations. Owing to the poor institutional environment De Beers pulled out of the West African nation in 1984. Siaka Stevens’s successors fared no better. With corruption, poor institutional environment contributing armed uprising, and later inviting the involvement by neighbouring Liberia. Which invaded the nation, leading to civil war. With much of the conflict taking place around, and over diamond mining districts. And the blood diamond trade was in play (2).

The Importance of Ethically Sourced Diamonds

In recent times there’s been a growing demand for ethically minded gemstones. A social consciousness that is partly related to the greater environmental concern expressed by those interested in the origins of the precious stones and jewellery they come to own. Especially a younger generation that has been raised in a world where care for the wider world has grown. The need for ethically sourced precious stones: one that is free from conflict minerals, that involves, child and forced labour, the use of profits from the sale of diamonds to fund armed conflicts, and other illegal activities are not a feature of the business process. Key here is not just bad actors who have directly involved the trade of blood diamonds, but their association with such stakeholders. Including by reputed jewellers, gem traders, and others who invest in the mining/mineral industry. The danger of blood diamonds lies with those who are indirectly connected with mining, distribution and profits that result from these gemstones. Which requires greater level scrutiny of the jeweller, and relevant gem traders business practices.

The Kimberly Process & the Ethical Character Diamonds

The Kimberley Process grew out of a 2000 meeting in Kimberley, South Africa, when the world’s major diamond producers and other stakeholders sought to address concerns, over consumer unease over the sale diamonds that were, directly or otherwise were being used to fund civil wars in African nations like Angola and Sierra Leone. The Kimberley Process establishes a framework that tries to stop the trade in conflict minerals, including blood diamonds to ensure the profits were not funding violence. So with the support of the United Nations, European Union, and the governments of 74 countries, with the World Diamond Council, and other interest groups, the Kimberley Process Certification Scheme (KPCS), was established. That ensures that all diamonds in trade flow through legitimate mining and sales channels, and are "conflict-free. According to experts, following the implementation of the Kimberly verification process, the percentage of the world’s conflicts minerals have gone down to 5 to 10 per cent of the world’s diamonds, going down from 25 per cent before 2003 (ibid).

_{Kimberley Process and List of ongoing conflicts in Africa}

_{Webysther, based on Kimberly Process Map.svg, CC BY-SA 4.0, via Wikimedia Commons}

Use of Blockchain in Combating Blood Diamonds

Blockchain is the basis of cryptocurrencies like Ethereum and bitcoin, this technology works via a decentralized ledger system: where transactional records are stored, in a variety of public networks. Experts in the field now believe that Blockchain could help combat the effects relating to the use, and spread of blood diamonds. As the technology (or system) is now being considered, and in some cases adopted by major players in areas like healthcare, supply chain management and yes even in the diamond trade. In 2018 De Beers announced that it would that would establish its own blockchain ledger to trace the origins and movement of its precious stones: from mines to the hands of customers. Blockchain is deemed to be advantageous owing to the high-security framework that underpins it. In addition to De Beers, other major gemstone companies are also adopting versions of this technology (3).

References

CNN (2011), What are 'conflict diamonds?': https://edition.cnn.com/2011/12/05/world/africa/conflict-diamonds-explainer/index.html; Last Accessed: 1/20/2021

Time (1980) Sierra Leone: From Athens to an Ill-Run Sparta: http://content.time.com/time/subscriber/article/0,33009,922082,00.html Last Accessed: 1/20/2021

Forbes (2018), How Blockchain Could End The Trade In Blood Diamonds - An Incredible Use Case Everyone Should Read: https://www.forbes.com/sites/bernardmarr/2018/03/14/how-blockchain-could-end-the-trade-in-blood-diamonds-an-incredible-use-case-everyone-should-read/?sh=3c25e45c387d