Monday, September 15, 2008

Sierra Leone Story Outline: Part 5

Part 5: Tracking a Diamond... From Sierra Leone back to Sacramento

Background on “Blood Diamonds”
You have likely heard of “Blood Diamonds”… more appropriately named “Conflict Diamonds.” By definition, these are diamonds sold through illegal channels to fund rebel armies… in essence they fund “conflicts” by providing rebel armies the means to buy weapons and perpetuate war. But it’s important to note: Diamonds fuel and fund these wars… they don’t cause war.

This is the premise for the movie “Blood Diamond” which brought Sierra Leone into the public eye for the first time a few years back… but by the time the movie was released the war was over. While blood diamonds still exist (especially in places like Congo & Angola where bloody conflicts continue) by definition, they are no longer a significant concern in Sierra Leone since the “conflict” has ended.

Furthermore, thanks to the Kimberly Process (an agreement among all of the diamond producing and trading countries in the world) as much as 90% of world diamonds are now regulated conflict-free. The KP is a global certification system that tracks a diamond from the mine to market to insure it travels through legal channels. And even though it has changed the face of the diamond industry since its inception in 2003, most would say it is flawed.

Sierra Leone Today
The Kimberly Process has been positive for SL. In 2000 (during the war) SL exported about $1 million worth of diamonds legally… last year, thanks to the KP, they exported $140 million (Diamonds make up about 90% of currency in SL). Obviously there has been a significant decrease in illicit diamond exports… and now that taxes are being paid on all these diamonds it’s a significant source of revenue for govt.

But in spite of the benefits of the KP, it does nothing to regulate the mines themselves. There are 1.3 million diamond “diggers” in Africa. These are not traditional mines, but rather big muddy pits filled with disease where hundreds of men spend all day waste deep in mud sifting and digging by hand for tiny diamonds… all for $1 a day. They produce 15% of the world’s diamonds… for a dollar a day.

In some mines, diggers are rewarded for a big find by earning a percentage of a diamond's worth... but it is up to the mine "manager" to decide how much the diamond is worth. Let's just say the likelyhood of a digger getting a fair price for their find is slim to none.

In countries like Sierra Leone, you’ll find young boys working in these conditions in the hopes that they can make a little money to help feed their family. And while we may consider this “child labor,” it’s important to note that since most men don’t make it to 40 years old… middle age is 20… and 10 is a reasonable working age.

The Story
We will attempt to track a diamond from a mine in Sierra Leone to a jewelry store in Sacramento. Since the diggers make $1 a day we’ll examine where the money goes.
(One common diamond path: Digger – Supporters – Land owner – Chief – Intermediate Dealer – Freetown Exporter – Cutting center (Israel/Antwerp) – Broker – Store)

We will also examine the common occurrence of child mining and the impact it has on life expectancy, education, family income, etc.

FYI: Diamond “Pits”:
  • Diamonds are formed by volcanic action, rock heat etc. forces everything to surface through kimberlitie pipes.
  • Usually miners simply dig down the pipe (a small containable area) and take out all the diamonds.
  • In Sierra Leone (and other conflict regions like Congo & Angola) the tops of the pipes have washed down river and over 50 milion years have scattered all over (alluvial diamond from rivers).
  • This is why rebel armies are so often able to take control of diamonds in those countries. Historically it has been very difficult for governments to control mining or regulate diamonds in these areas.

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