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Amid growing international realisation that the trade in
'conflict diamonds' is fuelling civil wars in the states of
Africa i.e. Congo, Angola, Sierra Leone and Liberia the world
community is finally trying to do something about it. Thousands
of innocent civilians have died in the wars which have also
had dire consequences for fragile economies of these countries.
The
figures hitherto have been mind-boggling. It is belived that
rebels in Sierra Leone smuggled out and sold some $ 70 millions
worth of diamonds last year. The illegitimate trade in Congo
diamonds hovers around the $ 400 million a year mark. One
estimate is that the civil wars in Congo, Angola, Sierra Leone
and Liberia have been financed by some $ 600-millions worth
of diamond loot. In the Congo civil war, the neighbouring
African states are backing various factions to ensure that
their man ultimately controls the mineral wealth of the country.
The
world's major diamond trading centres are Antwerp, New York,
Tel Aviv, Mumbai and Bangkok. Apart from Africa, Russia is
also a key diamond producer but Moscow has negotiated marketing
arrangement with De Beers, to maintain best prices.
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De Beers, which handles around sixty per cent of global
sales in raw uncut diamonds, now proposes to 'clean up' the
trade by demanding a guarantee from suppliers that they are
not dealing in 'conflict diamonds'.
De Beers has demanded that the diamond industry 'double'
its advertisement budget. The strategy is first to avoid a
public backlash that would reduce global demand for diamonds
and make it more difficult to sell its $ 4,000 millions diamond
stockpile.
The
'guns for diamonds' circuit operates through Angola, Congo
and Liberia in Africa and the major European armament capitals.
The 'conflict diamonds' are mainly sold in Antwerp, Tel Aviv
and New York.
Global
Witness, a prominent NGO, has called for major reforms in
the diamond industry which remains highly secretive and intensely
competitive. It is still devoid of codes of conduct and written
rules. Even the tax authorities have no access to correct
trading information, but the irony is that no Government wants
to disturb the diamond trade.
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