Transcript From Military Engagements to Engagement Rings

From Military
Engagements to
Engagement Rings
Tracing The Path of Conflict
Diamonds
Just Another Form of Carbon

75-120 miles below the
earth’s surface, extreme
heat and pressure can
cause carbon atoms to
crystallize, forming
diamonds.

Diamonds are then carried
to the earth’s surface during
volcanic eruptions, where
they must cool quickly or
turn into graphite or carbon
dioxide.
Where Are Diamonds Found?

Rough diamonds can either be found below the
earth’s 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.
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.
“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 month’s salary to buy an engagement ring, and
that diamonds are the only way to express true love.
“A Diamond is Forever”

Around the same time,
De Beers began
encouraging jewelers to
loan diamonds to
Hollywood stars for
prestigious events,
solidifying the diamond’s
association with wealth,
power, prestige, and
celebrity.
The Illusion of Scarcity
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

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.
1200
1000
800
600
400
200
0
Pre-1870s
1870s
Total # of Diamonds
Formation of
De Beers
Price Per Diamond
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%.
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.
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.
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.
Conflict Free Diamonds?
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Because diamonds are small and easy to transport, it is
difficult to track all diamonds leaving a given country.
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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.
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 world’s rough
diamonds, an average of $29
billion dollars worth, pass through
Antwerp. Other trading centers
include New York, Tel Aviv, and
Bombay.

Sorting experts then categorize
and assign value to the diamonds
before sending them to cutting
and polishing centers to be
prepared for resale.
The American Love Affair With
Diamonds
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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.
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.
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.
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.
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Currently, violence funded by conflict diamonds is escalating
in Cote D’Ivoire, proving there are serious loopholes in the
Kimberley Process.
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Recommendations to strengthen the Kimberley Process
include increasing government oversight of the diamond
industry and strengthening government enforcement policies.
Discussion Questions

List the links in the diamond chain from the formation of diamonds to point of sale.
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How does the sale of conflict diamonds prolong war and increase human rights
abuses?
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Explain how the perception of diamond scarcity affects diamond prices.

How does the artificially high price of diamonds affect conflict in diamond producing
regions?
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In what ways has American culture been affected by diamond advertising?
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What is the role of diamonds in American culture?
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How does the demand for diamonds among American consumers affect conflict in
diamond producing countries?