From Military Engagements to Engagement Rings

1
From Military Engagements to Engagement Rings

• Tracing The Path of Conflict Diamonds

2
Just Another Form of Carbon

• 75-120 miles below the earths surface, extreme
  heat and pressure can cause carbon atoms to
  crystallize, forming diamonds.
• Diamonds are then carried to the earths surface
  during volcanic eruptions, where they must cool
  quickly or turn into graphite or carbon dioxide.

3
Where Are Diamonds Found?

• Rough diamonds can either be found below the
  earths surface through industrial mining, or in
  river beds and streams through alluvial mining.
• Most of the diamond deposits currently mined in
  places such as Sierra Leone and Angola are
  alluvial, requiring only a shovel, a pan, and
  hard labor to mine.

4
The Origin of the Diamond Mystique

• Diamonds, once thought to be extremely rare, were
  first discovered in river beds in India in the
  4th Century BCE.
• The first recorded diamond engagement ring was
  given to the Duchess of Burgundy in 1477, though
  the tradition of exchanging wedding rings dates
  back as far back as the 2nd century BCE.

5
A Diamond is Forever

• Diamond engagement rings were not common until
  1947, when De Beers launched its famous A
  Diamond Is Forever marketing campaign in the
  United States.
• A similar campaign ran in Japan in the 1960s,
  fundamentally altering the Japanese courtship
  ritual.
• Other goals of the campaign included convincing
  people that diamonds are rare, that diamonds are
  so meaningful that they can never be parted with,
  that it is common and expected that a man spend
  at least one months salary to buy an engagement
  ring, and that diamonds are the only way to
  express true love.

6
A Diamond is Forever

• Around the same time, De Beers began encouraging
  jewelers to loan diamonds to Hollywood stars for
  prestigious events, solidifying the diamonds
  association with wealth, power, prestige, and
  celebrity.

7
The Illusion of Scarcity

• The price of diamonds depends on the perception
  of scarcity. If diamonds are perceived as being
  rare, then diamond prices will remain high. If
  new diamonds flood the market, prices will
  plummet.
• Until the 1870s, diamonds had only been found in
  river beds in India and Brazil. In the 1870s,
  however, large diamond deposits were discovered
  in South Africa, allowing unprecedented numbers
  of diamonds to enter the open market.
• A group of diamond investors formed De Beers
  Consolidated Mines, Ltd. to help control diamond
  production, thereby perpetuating the illusion of
  scarcity.

8
The Illusion of Scarcity

• Through its enormous wealth, power, and
  influence, De Beers is able to buy large amounts
  of diamonds whenever countries attempt to flood
  the market.
• Because of De Beers, the price of diamonds has
  remained steady despite civil wars and conflict.
  The average diamond ring, for example, is marked
  up 100 to 200.

9
Easily Exploitable Resource

• In areas such as Sierra Leone where alluvial, or
  river, mining allows easy access to quality rough
  diamonds, this artificially high price has
  encouraged rebels to take control of diamond
  mining areas in hopes of making a quick and
  substantial profit.
• Rebel groups such as the RUF (the Revolutionary
  United Front), force civilians to mine for
  diamonds.

10
Diamonds Fund Conflicts

• Rebel groups use the profits from the sale of
  diamonds, upwards of 300 million a year, to buy
  more small arms and supplies so that they can
  sustain their military endeavors.
• In the past decade, over 6 million people from
  Sierra Leone, Angola, Liberia, and the Democratic
  Republic of the Congo have become refugees after
  being forced from their homes by diamond fueled
  conflict.
• Millions more have died in diamond related
  conflicts over the past decade.

11
Conflict Diamonds Increase Human Rights Abuses

• Rebel cruelty in many conflict areas is well
  documented, and includes the abduction and
  training of child soldiers, amputation, abduction
  of males as diamond mine workers, and the use of
  rape as a tool of war.
• Diamond profits allow for prolonged conflict and
  increased human rights abuses in conflict areas,
• And despite UN arms embargoes and diamond
  certification schemes such as the Kimberley
  Process, the illegal sale of diamonds remains a
  profitable business.

12
Conflict Free Diamonds?

• Because diamonds are small and easy to transport,
  it is difficult to track all diamonds leaving a
  given country.
• Diamonds from conflict regions are often mixed
  with legitimate diamonds and certified as
  conflict free.
• Though many diamond experts claim that one can
  examine a diamond and identify its origin down to
  the very mine or river from which it came, others
  in the industry claim that smuggling and mixing
  diamonds from different origins makes it almost
  impossible to know if the diamond indeed came
  from a conflict area.

13
Antwerp The Diamond Capital

• Once diamonds are smuggled out of a conflict
  region, they inevitably end up in Antwerp,
  Belgium, the diamond capital of the world.
• Annually, half the worlds rough diamonds, an
  average of 29 billion dollars worth, pass
  through Antwerp. Other trading centers include
  New York, Tel Aviv, and Mumbai.
• Sorting experts then categorize and assign value
  to the diamonds before sending them to cutting
  and polishing centers to be prepared for resale.

14
The American Love Affair With Diamonds

• Once diamonds have been cut and polished, they
  are sent to manufacturers who craft them into
  jewelry.
• The United States is the largest market for
  diamond jewelry, buying up nearly half of the 56
  billion in diamonds sold last year.
• Almost all diamonds in the United States pass
  through the Diamond District in Manhattan before
  being sold to other retailers.

15
Diamonds are for Everyone

• Current ad campaigns in the United States are
  reaching out to new target audiences, including
  hip hop artists.
• Retailers are also targeting women, hoping that
  they will begin to buy diamonds for themselves,
  as is evidenced in the new right hand ring
  campaign.

16
International Initiative The Kimberley Process

• In 2003, the Kimberley Process Certification
  Scheme, a joint initiative developed by
  governments, the international diamond industry,
  and civil society, was introduced to help stem
  the flow of conflict diamonds.
• The Kimberley Process is a voluntary initiative
  that requires participants to certify that
  shipments of rough diamonds are conflict free.
• The diamond industry also voluntarily agreed to
  implement a System of Warranties, designed to
  help trace rough diamonds from mining to point of
  sale.

17
The Perfect Solution?

• While the Kimberley Process has not solved the
  problem of conflict diamonds, it has reduced the
  amount of conflict diamonds sold into the open
  market.
• Currently, violence funded by conflict diamonds
  is escalating in Cote DIvoire, proving there are
  serious loopholes in the Kimberley Process.
• Recommendations to strengthen the Kimberley
  Process include increasing government oversight
  of the diamond industry and strengthening
  government enforcement policies.

18
Discussion Questions

• List the links in the diamond chain from the
  formation of diamonds to point of sale.
• How does the sale of conflict diamonds prolong
  war and increase human rights abuses?
• Explain how the perception of diamond scarcity
  affects diamond prices.
• How does the artificially high price of diamonds
  affect conflict in diamond producing regions?
• In what ways has American culture been affected
  by diamond advertising?
• What is the role of diamonds in American culture?
• How does the demand for diamonds among American
  consumers affect conflict in diamond producing
  countries?