Friday, March 6, 2009

Blood Diamond

Sample diamond ring
In relation to diamond trading, blood diamond (also called a converted diamond, conflict diamond, hot diamond or a war diamond) refers to a diamond mined in a war zone and sold to finance an insurgency, invading army's war efforts, or a warlord's activity, usually in Africa.

HISTORY

Angola

In 1997, the United Nations (UN) placed Angola under sanctions forbidding countries from buying diamonds from them.[2] This was the first resolution of the UN which specifically mentioned diamonds in the context of funding the war. Reports estimated that as much as 20% of total production in the 1990s were being sold for illegal purposes, and 15% were specifically conflict in nature.[3] By 1999, the illegal diamond trade was estimated by the World Diamond Council to have been reduced to 3.06% of the world's diamond production.[4][5] The World Diamond Council reported that by 2004 this percentage had fallen to approximately 1%.[5][3]

Angola, formerly a colony of Portugal, gained independence on November 11, 1975. Although independent, the Popular Movement for the Liberation of Angola (MPLA), the National Union for the Total Independence of Angola (UNITA), and the National Liberation Front of Angola (FNLA) fought in civil war from 1975 to 2002. UNITA sold diamonds abroad in violation of the Bicesse Accords of 1994 to finance its war with the government.[6] The UN recognized the role that diamonds played in funding the UNITA rebels, and in 1998 banned countries from buying diamonds from Angola.


Liberia

From 1988 to 2001 Liberia was engaged in a civil war. In 2000, the UN accused Liberian president Charles G. Taylor of supporting the RUF insurgency in Sierra Leone with weapons and training in exchange for diamonds. In 2001 the UN applied sanctions on the Liberian diamond trade. In August 2003 Taylor stepped down as president, and after being exiled to Nigeria, now faces trial in The Hague. On July 21, 2006 he pleaded not guilty to crimes against humanity and war crimes.[6]

Around the time of the 1998 United States embassy bombings, al-Qaeda allegedly bought gems from Liberia as some of its other financial assets were frozen.[7]

Liberia today is at peace and is attempting to construct a legitimate diamond mining industry, and the UN has lifted sanctions and Liberia is now a member of the Kimberley Process.


Côte d'Ivoire

Côte d'Ivoire began to develop a fledgling diamond mining industry in the 1990s. A coup overthrew the government in 1999, starting a civil war. The country became a route for exporting diamonds from Liberia and war-torn Sierra Leone.[6][9] Foreign investment began to withdraw from the Ivory Coast. To curtail the illegal trade, the nation stopped all diamond mining, and the UN Security Council banned all exports of diamonds from Côte d'Ivoire in December 2005.


The Democratic Republic of the Congo

The Democratic Republic of the Congo (formerly Zaire) has suffered numerous civil wars in the 1990s, but has become a member of the Kimberley Process and now exports about 8% of the world's diamonds.[6] One of De Beers' most celebrated and priceless diamonds, the flawless D-colour 200 carats (40 g) Millennium Star was discovered in the DRC and sold to De Beers during the height of the Civil War that took place in the early to mid-nineties.


The Republic of Congo

The Republic of Congo (Congo-Brazzaville) faced UN sanctions in 2004 because despite having no official diamond mining industry, the country was exporting large quantities of diamonds, the origin of which it could not detail.


Zimbabwe

Although Zimbabwean diamonds are still not considered blood diamonds under the Kimberley Process, the current chaotic production at Marange and smuggling are being monitored by the World Diamond Council.


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