Title: The Adverse Economic, Health, Environmental, and Human Rights Consequences of the Global Diamond Trade
1The Adverse Economic, Health, Environmental, and
Human Rights Consequences of the Global Diamond
Trade
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4Diamonds
- Symbols of wealth, power, love, and magical
powers - Created from carbon early in the earths history
under extreme temperature and pressure - Industrial uses cutting, chemically inert,
transmits many wavelengths of light, can be
tweaked to hold an electric charge - Discovered in India around 800 B.C.
- Commercial mining began in 1866 in South Africa
5Diamond Production
- Botswana (26), Russia (20), Canada (18),
Zimbabwe (8-13, possibly up to 25 with new
finds), Angola (10) are the major mining
countries - Antwerp, Tel Aviv, New York and Mumbai (Bombay)
major trading centers
6Diamond Production
- Most cutting done in Tel Aviv, Mumbai, New York
and Thailand - Major retail markets U.S. (48 of diamond
jewelry) and Japan
7The US Diamond Market, 2005
- 900 million worth of rough diamonds and 15
billion worth of polished diamonds imported - Retail sales 33.7 billion
8Kimberley Mine, SAYielded 3 tons of diamonds,
Closed 1914
9Mirny Diamond Mine, SiberiaLargest open diamond
mine in the world
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13The Diamond Engagement Ring
- Diamond engagement ring introduced in 1477
(Archduke Ferdinand ? Mary of Burgundy) - De Beers Mining Company
- Founded by Cecil Rhodes in 1888
14Cecil Rhodes(Rhodesia, Rhodes Scholarship,
DeBeers Mining Company)
- We must find new lands from which we can easily
obtain raw materials and at the same time exploit
the cheap slave labour that is available from the
natives of the colonies. The colonies would also
provide a dumping ground for the surplus goods
produced in our factories.
15Diamond Rings
- 1939 DeBeers hires N.W. Ayer and Company to make
diamonds a psychological necessitythe larger
the diamond, the greater the expression of love. - Secret engagements popularized (men spend more
than women) - By 1942, 80 of engagements in U.S. consecrated
with diamond rings (still true today) - Diamonds first worn by stars to the Oscars in 1942
16Diamond Rings
- 1947 A diamond is forever slogan born
- Jewelers instructed to tell (pressure?) men - who
buy 90 of all diamonds to spend at least 2
months salary on the ring
17Diamond Rings
- DeBeers promotes surprise proposals
- Men spend more than when women involved in
selection process - Later Anniversary diamonds
18Diamond Rings
- 1999 Advertising Age magazine declares A
Diamond is Forever slogan the most effective of
the 20th Century - Recognized by 90 of Americans
- 2003 De Beers begins to market diamonds to
single women - Your left hand says we, your right hand says
me.
19Pet JewelryThe Diamond Dog Collar
20Diamonds Profits and Losses
- 120 million carats rough diamonds mined for
jewelry per year weigh 24 tons, worth
approximately U.S.14 billion - 1 carat diamond retails for 350-750 in the U.S.
- Cost less than 2 billion to extract
- Ultimately sell for over 50 billion
21Diamonds Profits and Losses
- Workers desperately poor but hoping to strike it
rich in casino economy - 1 million in Africa
- Work under dangerous, unhealthy conditions for
pittance - Diamonds may be embedded in asbestos
- Workers suffer from cancer, leukemia, silicosis
22Diamonds Profits and Losses
- Middlemen, diamond dealers and exporters earn the
lions share of profits - Most foreign nationals
- Very little profit re-invested in local
communities
23Diamonds Profits and Losses
- 2008 DeBeers settles several class action
lawsuits over anti-trust violations, unfair
competition, and consumer-protection laws related
to monopolizing supplies, conspiring to
fix/raise/control prices, and disseminating false
and misleading advertising - Over 300 million plus prohibitions/oversight
- DeBeers admits no wrongdoing
24Diamonds Human Rights Abuses, Conflict and
Terrorism
- Mine owners violate indigenous peoples rights
via destruction of traditional homelands and
forced resettlement - Mining hastens environmental degradation of
ecosystems already under severe stress
25Diamonds Human Rights Abuses, Conflict and
Terrorism
- Diamonds have been used by rebel armies in the
Democratic Republic of the Congo, Angola,
Liberia, and Sierra Leone to pay for weapons used
to fight brutal civil wars - 3.8 million deaths
- Child soldiers
- Forced labor
- Sex slavery, HIV
- Terrorize local populations (e.g., RUF in Sierra
Leone killed and mutilated thousands via
amputations with machetes and axes in 1990s)
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27Diamonds Human Rights Abuses, Conflict and
Terrorism
- Al Qaeda and Hizbollah have used diamond monies
to - Fund terror cells
- Hide money targeted by financial institutions
- Launder profits from criminal activity
- Convert cash into a commodity that is easily
transportable and holds its value
28Diamonds Human Rights Abuses, Conflict and
Terrorism
- Smuggled and illicit conflict diamonds may amount
to as much as 10-15 of diamond jewelry sold
worldwide - U.S. State Dept.
- 20
- Global Witness
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30Alternatives and Solutions
- Diamonds
- Consider alternatives to traditional engagement
ring - Cubic zirconium
- Synthetic/cultured diamonds over 75,000 lbs
produced each year worldwide - LifeGems (diamonds created from carbon captured
during cremation of human and animal remains!) - Other
31Alternatives and Solutions
- Diamonds
- Purchase only verifiable conflict-free diamonds
- cut, color, clarity, and conflict
- Query jewelers, consumer education, boycotts,
protests, shareholder activism - Diamond industry prefers self-regulation
32Alternatives and Solutions
- Diamonds Kimberly Process Certification Scheme
- Requires rough controls to assure conflict-free
diamonds - Governments license miners
- Diamond traders utilize sealed, tamper-proof
containers - Integrated computer databases in importing and
exporting countries catch discrepancies
33Alternatives and Solutions
- Diamonds Kimberly Process Certification Scheme
- Importing countries enact strict customs
regulations, backed by thorough inspections and
harsh penalties - Supported by diamond industry and UN General
Assembly - Involved countries (71) slow and often
ineffective in enacting Scheme
34Symbols of Love Alternatives and Solutions
- U.S. Clean Diamond Act of 2003
- Mandates participation in Kimberly Process
Certification scheme - Money from fines (up to 10,000 for civil and
50,000 for criminal penalties) and seized
contraband earmarked for victims of armed
conflict - Implementation slow
- USA Patriot Act includes anti-money laundering
measures
35Alternatives and Solutions
- Amnesty International/Global Witness 2006-2007
survey - ½ of companies failed to respond
- Only 38 of companies responding able to provide
a meaningful account of their policies - Helzberg Diamond Shops, Sterling (Signet), and
Tiffany and Co. have most comprehensive policies
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37Safe Diamonds (?)
38Alternatives and Solutions
- Consider alternative tokens of affection
- Homemade gifts (cards, photo collages, videos,
poems, meals, home improvement projects) - Donations to charities
- Eco-jewelry made from recycled materials by
indigenous peoples - Profits returned to local communities, providing
wide-ranging social and economic benefit
39Conclusions
- Diamonds as symbols of love are cultural
constructs perpetuated in part by the persuasive
marketing efforts of multinational corporations - Production involves significant damage to local
communities and the environment and harms men,
women and children
40Conclusions
- Production supports human rights abuses, armed
conflict, and even terrorism - Symbols of love should not be constant reminders
of death and destruction - Consider alternative symbols of love
- Work for social justice and change
41Paper/References
- Donohoe MT. Flowers, diamonds, and gold The
destructive human rights and environmental
consequences of symbols of love. Human Rights
Quarterly 200830164-82. - http//www.publichealthandsocialjustice.org
- http//www.phsj.org
- martindonohoe_at_phsj.org