How Effective is Kimberley Today?

The Kimberley Process

Marissa Boyajian and Whitney Donaldson

What Worked and What Did Not?

The Kimberley Process has brought together states, multinational corporations,

and NGOs to help regulate the trade in conflict diamonds; however, serious

problems still remain and can be confronted by stricter enforcement of

internal controls, industry regulation, and cross-border smuggling.

The Three Players in the Kimberley Process•Participants- state governments

•Observers- multinational corporations•Overseers- NGOs http://youtube.com/watch?

v=mOIUn0We12A&feature=related

Ways In Which Kimberley is Working

•2004-Kicked out of Kimberley after it was found that it had smuggled conflict diamonds•Statistics compiled by the Kimberley Process were crucial in this discovery•2007-Controls on the diamond trade in the country improved and they were let back in

Democratic Republic of the Congo

Ways In Which Kimberley is WorkingThe First Time…

•Serious Controls have been introduced to track and regulate the diamond industry•A legitimate attempt has been made by the international community to address the problem of the illegal exploitation of natural resources•An international agreement has been negotiated between governments, industry, and civil society acting as equal partners

Ways In Which Kimberley is Working

Before: 4% of the worlds trade of rough stones were attributed to

conflict diamonds

Today: That number has fallen to

less than 1%However, Kimberley is not solely to blame for the decrease

Ways in Which Kimberley is Not Working

•United Nations Statistic- $10.2 million worth of diamonds are unaccounted for between some participating and non-participating states•Kimberley Process data only shows trade between Kimberley Process countries

Ways in Which Kimberley is Not WorkingSuspicious Trading in Polished Diamonds

•Kimberly Process only covers trade in rough diamonds, which are diamonds before they are cut or polished•Illicit and conflict diamonds can enter the Kimberley Process system by being smuggled•Uganda, Congo, and Zambia example•Trading and manufacturing centers are the connection between mines and consumers•Kimberley DOES suggest ways to control this process but has FAILED to implement ways to enforce measures

Ways in Which Kimberley is Not WorkingLacks Legitimate Internal Government Controls

•Cote d’Ivoire•Entering diamond trade through Ghana and Mali

•Sierra Leone•15-20% of the diamond trade out of the country is said to be illicit•Many secretive operations within the country

Ways in Which Kimberley is Not Working

Publicity of the Diamond Industry and Its Cover Up

•De Beers www.debeers.com•Wal-Mart www.walmart.com•Saks Fifth Avenue www.saks.com•Tiffany and Co. www.tiffany.com

How to Make Kimberley More Effective

•Increase government oversight over the diamond industry •Strengthen internal governmental controls• Publish Statistics•Finance the Scheme• Act promptly in response to problem nations • Combat cross-border smuggling

How to Make Kimberley More Effective

Increase Government Oversight of the Diamond Industry

1. require diamond companies to keep records of trades and stocks2. have records independently audited3. carry out physical inspections of diamond imports

& exports to make sure they are compliant with Kimberley standards

- tamper resistant containers- certify country of origin

4. require polishing factories to keep records of rough diamonds that have been processed to polished stones

5. hold companies accountable for noncompliance

How to Make Kimberley More Effective

• Strengthen Internal Governmental Controls

– “Chains of Warranty” • guarantee the origin

of rough diamonds as they move from one dealer to another.

– Require licensing – Higher evaluation and

verification standards– Prevent diamonds from

entering and leaving country illegally

– Safety controls for miners

– Strengthen the training and funding of government monitoring bodies.

• Publish Statistics– Data detects

irregularities in diamond trade would able to pinpoint when blood diamonds enter market

– Leads to transparency & accountability

How to Make Kimberley More Effective• Combat Cross-Border

Smuggling– All players must work

together to prevent illicit diamonds from entering the trade

– Agree on a standard export tax on rough and polished diamonds

– Strong controls when diamonds transit through customs-free zones.

• Act Promptly in response to problem nations– Deterrence for future

illegal trading

• Finance Kimberley– Have governments

provide funding and professional support for the coordination and implementation of the KPCS.

Should the Kimberley Process do more?