Conflict-free diamonds
Conflict diamonds or “blood diamonds” are diamonds that come from areas controlled by forces or factions opposed to legitimate and internationally recognized governments. Since the problem of conflict diamonds was first noticed in the diamond industry ten years ago, the flow of blood diamonds has been dramatically reduced, most significantly through the implementation of the Kimberley Process. Ethical and conflict-free diamonds are those that are mined under conditions free of bloodshed, child labor and ecological destruction. Workers earn fair wages and enjoy safe and violence-free work environments.
The 80 countries participating in the Kimberley Process agree to trade rough diamonds only with those other countries that have adopted the process. The Clean Diamond Trade Act of 2003 and Executive Order 13312 were used to legally commit the US to the Kimberley Process and established a framework for how the process is implemented. In addition to the Kimberley Process, the USA Patriot Act gives government officials more power to monitor global communications and trade with the US. This act mandates compliance with the Kimberley Process for all US jewelry distributors, minimizing the illegal activity of one of the world’s largest buyers of diamonds.
THE KIMBERLEY PROCESS
The Kimberley Process requires the following:
- That every rough diamond imported or exported be accompanied by a Kimberley Process certificate, sealed in a tamper-proof container. Parcels of rough diamonds without a certificate were prohibited from entering or leaving the country.
- That rough diamonds be imported or exported only to those other countries participating in the Kimberley Process.
- That all imports of rough diamonds must be registered with US Customs and Border Protection and that all exports of rough diamonds must be registered in the Automated Export System prior to departure, regardless of value.
- Importers and exporters of rough diamonds must keep records of all Kimberly Process certificates for at least five years. In addition, an annual report must be filed declaring all import and export activity for the year.
As a result of the Kimberly Process, diamonds are now among the most monitored and audited of all natural resources in the world. The extensive certification process prevents conflict diamonds from entering the supply chain by isolating non-participating countries from the global diamond market. Depriving illegitimate forces of what was once a significant source of funding, the Kimberley Process has become an important factor in restoring civil order and economic stability to developing nations.
Adoption of the Kimberley Process by the world’s leading diamond producers and consumers has reduced conflict diamonds from 15 percent of all diamonds sold in the 1990s to less than one-tenth of one percent today. Conflict-free diamonds are now a source of prosperity, especially in Africa:
- 65% of the world’s diamonds come from Africa, which brings these countries $8.5 billion annually.
- Diamond export revenue enables every child in Botswana to receive a free education; unheard of in the history of that nation. Since diamonds were discovered in Botswana, the number of secondary schools has increased 100-fold.
- About 40% of Namibia’s export earnings come from diamonds. These funds represent a critical source of funds in the fight against the HIV/AIDS epidemic in that country.
After a decade of civil war, Sierra Leone was banned from the diamond trade in 2000. Within 3 years, the war ended and Sierra Leone joined the Kimberley Process. Today, diamond export earnings are the most important source of funds for rebuilding Sierra Leone’s infrastructure, health services and education systems.
HOW TO TELL IF A DIAMOND IS CONFLICT FREE
There are a few ways to be 100% sure you’re purchasing a conflict-free diamond ring, but here are some tools that can help you feel better about your decision:
1. The GIA,EGL,IGI,HRD,AGS report
2. Talk to your jeweler
3. Do your research on retailers
Some jewelers may provide a Diamond Origin Report for examination. Diamond origin reports are similar to many diamond grading reports in that they list the 4Cs of diamonds (Cut, Color, Clarity, and Carat) and indicate any defects. However, a diamond origin report also lists the diamond’s country of origin and provides a laser engraving of the report number on its girdle.
By knowing where your diamond was mined, you can learn whether your diamond came from a Kimberley Process compliant country. You can also visit the GIA’s website to request more information on diamonds that have origin reports.
TALK TO YOUR JEWELER
It is important to work with a jeweler you trust who can tell you all about your chosen diamond. Ask questions, take notes and make sure you learn more about your diamond’s origins to make an informed buying decision. Jewelers should also have access to the necessary documentation to support their claims, such as any regulations they comply with as a company or even Diamond Origin Reports to verify that the stones come from compliant countries.
DO YOUR RESEARCH ON RETAILERS
If you’re buying a diamond online, be sure to check each dealer’s website to learn more about how they handle diamond sourcing. Many companies dedicate entire web pages to explaining where they stand on Kimberley Process diamonds and promoting safe diamond mining conditions.
ETHICALLY SOURCED DIAMONDS vs. CONFLICT FREE DIAMONDS
Overall, the Kimberley Process has significantly reduced the presence of blood diamonds. But, there are limitations to the process that leave some loopholes and there are always people willing to exploit the regulations.
In addition to forged documents and member countries secretly trading with non-members, the Kimberley Process often faces human rights issues despite its best intentions. Child labour, fair wages, unsafe working conditions and environmental destruction are just some of the issues that the Kimberley Process does not solve by simply requiring diamond sellers to confirm a stone’s origin.
CONFLICT-FREE PRICING AND ETHICAL DIAMONDS
Buyers often decide which diamond to buy based on their budget and what they can afford. Below are methods for pricing ethically sourced and conflict-free diamonds, and how to save money during your purchase:
THE COST OF CONFLICT-FREE AND ETHICALLY SOURCED DIAMONDS
Conflict-free and ethically sourced diamonds sometimes cost more than the average stone. Often, the extra money comes from an effort to pay local workers a fair wage, lack of conflict, or even expanded processes or equipment used to leave a smaller footprint on the environment.
Additionally, it is not uncommon for less reputable retailers to label diamonds of questionable provenance “conflict-free” and mark up the price by 25%. As consumers become more aware of the atrocities of diamond mining, some retailers see this awareness as an opportunity to use conflict-free titles as a marketing ploy. In short, ethical diamonds come at a cost to both the seller and the consumer, but they don’t have to be expensive! You can find a diamond within your budget.
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