Print This Article Post Comment Add To Favorites Email to Friends Ezine Ready

The Diamond Trade In 2007: How Much Blood Remains?

By: Marc Choyt Home |


In March, 2007, I traveled to Turkey, where I attended the Istanbul Jewelry Show. There I met a diamond dealer, the president of a large firm with a large booth. He was the brother of a personal friend and had been in the diamond industry for many years. His primary business was the Russian market, the fabulously rich oligarchy which has a large appetite for bling. The larger, the better.

"How much do conflict diamonds still enter the supply chain?" I asked.

"A huge amount," he said. He didn't trade in these stone, but his customers were not so concerned about the issue. By stating that much of the world diamond market does not care much whether diamonds are from conflict zones or not, he merely confirmed what NGOs such as Global Witness, who broke the conflict diamond story, have said for years.

Blood Diamonds Still Enter the Market

If someone brings a pocket full of uncut diamonds to the back alleys of Mumbai, Antwerp or New York, they will find a way into the supply chain. Amnesty International, states that conflict diamonds are still being widely circulated. No one knows how many thousands of women wear engagement rings purchased some time in the last fifteen years that funded the deaths of 3.7 million Africans. The sourcing of diamonds has too often embodied the opposite of what diamonds represent, when a person falls to his or her knees to propose to their beloved.

The Kimberly Certification Process has definitely affected the trade of blood diamonds. It is an honest and valiant attempt by the international diamond industry to regulate the trade while continuing to have some control of the market, which is in their interest.
However, the Kimberly Process is self enforced, the practices in the diamond industry are highly secretive and there is no system of independent, periodic reviews of signature countries. Diamonds can change hands many times before they reach the jeweler. It is impossible for the sector to close all of the potential holes in the supply chain; from mine to market.

Blood Diamond: Symptoms of Much Greater Issues

Blood diamonds are merely a symptom of much greater issues, though. The current war and destruction in Africa are the result of the colonial policies that destroyed complex cultural structures - the racist, dehumanizing commoditization of people and resources that even now still fatten the economies of the developed world.

For blood diamonds to not exist, we would have to eliminate poverty and injustice in the war torn African countries that are too much in chaos to reap the benefit of this resources. No single government or trade organization can stop this. Love, compassion, fairness and equality would have to be more important than the current relentless greed that drives human misery.

Now, add to the above another issue in the news last year: certification. Last year GIA, was implicated in a grading scandal that rocked the industry. Even a slight variance in grading can mean millions of dollars in a parcel of diamonds. The issues have been resolved and people have lost their jobs and their reputations. Yet recently, when looking to purchase a diamond, an industry insider remarked that certain labs are "softer" in their grading of diamonds than others. This is not the first anecdotal evidence I have heard that has led me to believe that the grading of diamonds is not as objective it is made out to be.

There are extremely wide ranging views on these issues, and many people in the jewelry trade would probably dispute what I write here. Diamonds represent over 50% of the business for the jewelry industry as a whole. For my company, it is less than 10%. I have less to lose in giving my candid insider's opinion, but it is only an opinion, a snapshot; and I would never pretend to be an authority on this subject.

From the point of view of ethical purchases, the obvious solution for some is to avoid the African supply chain. You can purchase diamonds that are certified from Canada. However, many African countries depend upon legitimate diamond trade, so the ethics of boycotting African diamonds has its drawbacks.

Even Nelson Mandala asked that African diamonds not be boycotted. Ironically, he has become a spoke person for De Beers. De Beers itself has taken on new development initiatives in an attempt to polish their image.

Blood-Free but Still Not Fair Trade

Just because a diamond is from a Kimberly certified source does not mean that it is something that you can feel proud of owning it, as this New York Times article entitled: "Diamonds Move From Blood To Sweat And Tears."

The Kimberly process is regulatory program. It does not address wages or environmental conditions. At present, there are over a million, perhaps as many as 1.3 million diamond diggers. Most of these people are poor. They are often paid under market for their finds. Diamond areas can be as large as a hundred square miles. Even in established mines, as much as 20% the diamond rough may be lost to theft.

The Quest for Fair

The decision of where one should purchase their diamonds can leave the ethical consumer in a "Catch 22." The most worthy viable, ethical solution is to push for ethically sourced, or "fair trade" diamonds now. Already, there are strong industry initiatives to change the way diamonds are mined. One of the most noteworthy is taking place right now in Sierra Leon. However, most diamonds from mines that have strict environmental and fair labor protocols, such as those produced by Wade Watson in Sierra Leon, are mixed in with other diamonds in the diamond cutting centers.

A small group of people, from manufacturers to major players in the diamond industry, have championed ethical jewelry. The "Ethical Jewelry Summit" which took place at the world bank on Oct. 25th, 26, 2007, focused on the plight of small scale, artisan miners in the diamond and precious metal sectors.

Consumers can help too. If just one out of ten of those in search of a diamond engagement ring asked for a "fair trade" diamond, the process would move more quickly. A recent article in the Rapaport Magazine (9/07, published only in print) surveyed sales people in Las Vegas, NV jewelry stores. The article generated some controversy. It found that many who sell diamonds even now, know very little about the conflict diamond issue. These sales people must be besieged by an army of educated consumers who demand ethical diamond sourcing.

The jewelry business, like most every other business, has always shown itself to be more motivated by money than by ethics. However, all of those involved in ethical jewelry practices hope to move our initiatives forward with the support of people in the market who share our humanitarian concerns.



Article Source: http://www.eArticlesOnline.com

About the Author:
Marc Choyt is President of Reflective Images, an award winning jewelry company, www.celticjewelry.com that sells wedding rings sourced by artisan designers online at www.artisanweddingrings.com. His company produces fair, eco-sourced, fairly trade jewelry. Marc also authors www.fairjewelry.org supporting green, fair trade, socially responsible jewelry practices.

Tags: , , , , ,

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Articles Via RSS!

Recent Related Articles From

  • Profit Comes From Effective Supply Chain Management
    By: Larry Emsweller | Feb 12th 2009
    If you lag behind in technology, you are putting your efficiency at risk. Supply chain management is simple if you are shipping one thing at a time, but when shipping multiple SKU orders, they need to be directed to the proper shipping point. A competent software management tool can maximize your direct plant shipping opp ... Read

  • Basics Of Supply Chain Management
    By: Harmeet Kohli | Mar 12th 2007
    Supply chain management (SCM) is the process of planning, organizing, implementing, and controlling the operations of the supply chain for the purpose of satisfying the... Read

  • Features Of Supply Chain Management Software
    By: Lucky Rajput | Apr 14th 2010
    Supply chain management software (SCMS) includes software modules and tools that enables in the proper execution of supply chain transactions. Besides, it also facilitates in controlling ethical business processes and in maintaining sound relationships with its esteemed customers.

    Read

  • A Brief Analysis Of The Scope Of Supply Chain Management
    By: john | Sep 22nd 2010
    An impeccable supply chain management brings distinguishable business growth. Ideally, it is an integral part of the logistics industry. Read

  • Polish Skills With Online Executive Programs In Supply Chain Management
    By: john | Oct 4th 2010
    Today, a huge gap exists between the demands for qualified human resource in the emerging logistics and supply chain sector and the human resources deployed currently in the logistics industry. Read

  • Landing The Best Supply Chain Jobs In The Uk
    By: Mark Doherty | Jan 14th 2008
    The supply chain job market in the UK has become more vigourous over the last decade. UK businesses across all industrial sectors are expanding into national and international markets. This pattern of growth means that all companies need to develop dynamic and mobile supply chain programmes. Read

  • Supply Chain Management Software: A Very Complex Software
    By: George Purdy | Jun 2nd 2008
    Supply chain management (SCM) improves the methods that companies use to find and use raw materials necessary to make services or products. SCM also aids in the delivery of said services and/or products. Basic components of SCM include planning, source, creation, delivery and return. Read

  • Manage Your Business Supply Chain With Supply Chain Visibility Tool
    By: Lucky Rajput | Dec 25th 2009
    Comprehensible information about the status, arrival and delivery information of goods is essential for focusing efforts in business and in undertaking corrective action. The Supply Chain Visibility tool helps to run the entire supply chain besides maintaining strong relation with esteemed vendors. Read

  • Incorporated Approach Towards Supply Chain Management
    By: john | Jul 29th 2010
    The chain of networks that help in transferring and distribution of the raw materials till finished goods is known as supply chain. Read

  • Supply Chain Jobs Are The Need Of Time For Businesses Going Global
    By: pradeep | Jul 30th 2010
    Logistics jobs along with other supply chain jobs are swiftly developing in various industries such as Information and Technology, manufacturing, construction and packaging. There is an abundance of these jobs in the market and demand for an efficient logistics team to measure the efficiency of the purchase and supply flow. Read


Copyright © 2005-2011 eArticlesOnline, LLC - All Rights Reserved
Terms of Service | Privacy Policy