The Debate About Blood Diamonds!
Why the debate on blood and conflict diamonds?
Well the root cause of Conflict Diamonds coming into so much publicity is because of Hollywood and the movie "Blood Diamonds" starring Leonardo DiCaprio, Dimon Hounsou and Jennifer Connelly. It is based on the 1990's uprising in the African Continent, which brought international attention to this aspect. The term "Conflict Diamond" or "Blood Diamond" was virtually unheard of before the movie. Although the dramatized version of Hollywood is not the exact truth, but is not far from it. The area has definitely seen its share of violence caused due to diamonds and its illegal trading. The trading of conflict diamonds as reported by the Kimberly Process has been less than 1 % as compared to almost 4 % in 1990. However, a lot of the gurus are not sure about the authenticity of these numbers.
The jewelry and diamond industry was actually rocked by the news that this movie was being made. In July of 2006, there were seminars and articles about the movies and it's release dates. The jewelry industry and hollywood were head to head. Considering the movie was releasing in the middle of the shopping season. Obviously, Warner Bros. wanted maximum leverage during the holiday season when the consumer has diamonds on his mind. While the jewelers were all against it, considering that this is would hit their busy season. Everyone was gearing up with information to combat questions by consumers about blood diamonds. It all turned out to be much a Hulla Bulloo about nothing. Customers still continued buying diamonds, promotions were still being done and the movie did not dampen anyone's spirit of the season.
Why diamonds?
Diamonds are one of the most precious stones known to man. The first thing that comes to your mind when you think of a diamond is money and value. No matter how the diamond is, it is an expensive rock and people always want it. If we break it down, you will see that it is a natural commodity which has transformed itself into a multi-billion dollar industry.The countries that have involved themselves in trading of conflict diamonds include the Republic of Congo, Liberia and the Ivory Coast. They have been ravaged with civil wars and political unrest for more than a decade now. The primary source of income for these are agricultural based. Inorder to continue their tyranny and maintain unrest in the nation they needed money. One of the major sources of income for these countries are diamonds and it's diamond mines. They thus diverted their energies towards mining and trading in diamonds.
Major organisations such as the UN have imposed heavy sanctions on these countries and any country that involves themselves in trading with them. There have always been small pockets of leaks, which have given way to diamond trading. Out of all these sources, the Ivory Coast is probably the most significant. It is one of the largest producers of alluvial diamonds. The UN has imposed sanctions on the exports of it's rough diamonds. The internal democratic government has also banned all exports of diamonds to divert resources towards curbing violence and the civil war.
Is there anything good about conflict diamonds?
- An estimated 5 million people have access to appropriate healthcare globally thanks to revenues from diamonds.
- An estimated 10 million people globally are directly or indirectly supported by the diamond industry.
- The diamond mining industry generates over 40% of Namibia's annual export earnings.
- Diamond revenues enable every child in Botswana to receive free education up to the age of 13.
- Sierra Leone (previously a conflict nation) is now at peace and exported approximately $142 million diamonds in 2005.
- Approximately one million people are employed by the diamond industry in India.
- Approximately $8.4 billion worth of diamonds a year come from African countries.
- More than 99% of diamonds are now from conflict free sources and traded under the UN-mandated Kimberley Process.
Just as my Mum would say, there is a good and a bad to everything. It is what you decide to be!
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