Global Flows | diamonds

Diamonds: A Symbol of Love and Death

The great disparity between the global north and south is clearly evident in the global flows of diamonds. The global north encompasses developed countries, such as the United States and Western European countries, while the global south encompasses much of the developing countries in which commodity production and industrialization takes place, such as countries in South America and Africa. Such is the case with diamonds, negatively impacting producing countries not only economically, but on public health as well.

Once the diamond has been through the production phases of cutting and polishing, the stones are typically sold through one of three possible sales channels to retailers: long-term contracts, short-term contracts, and auctions (Fishler, et al., 2013). Since De Beers has been involved in the diamond industry for years, the company’s diamonds are typically mined, produced, and sold at retail within their company. In 2001, De Beers Diamond Jewelers was established by Louis Vuitton Moet Hennessy and De Beers SA and opened its first store in London ("Watches & Jewelry"). Since it’s debut in 2001, De Beers has expanded to about 40 stores world-wide, in areas such as US, Eastern and Western Europe, Asia, and Persian Gulf ("Watches & Jewelry").

The price of a diamond is primarily determined by the economy and quality of the diamond. Manipulating basic supply and demand principles, Cecil Rhodes was able to sustain his monopoly by maintaining diamond scarcity and therefore controlling high prices during the diamond market’s early days. Although De Beers no longer holds monopoly over the diamond industry, it still has a dominant presence in the market and controls about 40% (Zoellner, 2010). Major producers continue to control supply in fear of a dramatic devaluation if all

diamonds were to be released to the market (Zoellner, 2010). In addition to supply control, economic downturns also significantly influence the diamond market (Zoellner, 2010). There has been a consistent trend in demand decrease during economic hardships, causing price to plummet (Zoellner, 2010). Diamond quality is graded using the 4 C’s: carat, color, clarity, and cut. Critics often note only carat is completely objective and color, clarity, and cut are subjective, creating a difference in prices (Fishler, et al., 2013). Due to this disparity, the final price of diamonds are left to negotiation between buyer and seller, often selling at a much higher list price (Fishler, et al., 2013).

The most significant political agreement surrounding the trade of the diamonds is the Kimberley Agreement. Beginning in the 1990s, diamonds have been used to fund African wars in countries such as Angola, Sierra Leone, and the Democratic Republic of Congo ("Conflict Diamonds" ). These diamonds, more commonly known as conflict or blood diamonds, are used to purchase weapons and were often excavated by citizens at gunpoint; falling victim to violence, murder, and rape (Diamonds of War, National Geographic, 2007). Although De Beers did not have mines in the conflicted countries, it is evident conflict diamonds were smuggled into the authentic diamond supply and sold at retail level (Global Witness, 1998). Awareness begun to spread and campaigns, such as the ad by Amnesty International to the left, began to go global. In fear of the loss of profit, African countries involved in diamond production assembled in Kimberley, South Africa in 2002 and developed the Kimberley Process Certification Scheme to ensure rough diamond sales are not funding violent motives ("About", Kimberley Process). The agreement has shifted trade towards a high demand in certified diamonds from countries which have adapted the Kimberley Process Certification System ("Conflict Diamonds"). Unfortunately, the Kimberley Process has been criticized to have major flaws which have permitted the continuation of black market conflict diamonds (Zoellner, 2010). The lack of enforcement and unanticipated events, such as the violent actions by President Mugabe in the Marange fields, make it difficult for the process to be enforced (Zoellner, 2010).

evident in the literal loss of pieces of people driven by financial motives, both in the global north and south. Although kidney donors seem to be making an active choice in selling their kidney to the global north, the oppression of poverty forces them to turn to desperate options (Bakdash and Scheper-Hughes, 2006). In the case of blood diamond victims, violence was the compelling factor that unfortunately placed victims in the hands of rebels. Desparation of poverty is also evident in the victims involved in the excavation of diamonds, going to extraordinary measure to find even the smallest piece of diamond ("Reporter Discusses”, National Geographic). Fortunately, humanitarian groups have stepped in to help amputees and provide prosthetics, as seen the photo to the right, and have helped some get back on their feet.

With the rise of mining in the colonial era, Africans were susceptible to the anthropo-climatology theory of white’s inability to acclimate to the African climate, forcing blacks to work as laborers. This scientifically incorrect theory argued blacks were better suited to work in the African climate and were unworthy of equal treatment, such as medical attention.

The issue of conflict diamonds has, in a sense, constituted the exchange of diamonds for literally bits of people. During the civil war in Sierra Leone, the Revolutionary United Front often amputated victims, cutting their hands, feet, or both ("Reporter Discusses”, National Geographic). These amputees are often left incapable to work and are forced to become beggars, in need of basic necessities ("Reporter Discusses”, National Geographic). A similarity between kidney donors and blood diamond victims is clearly

De Beers Diamonds Global Flow-edited Screen Shot

De Beers diamonds global flow, mines indicated with M, popular production sites with P, and stores indicated by number

Amnesty International Blood Diamond Awareness Campaign

Ads by Amnesty International France attempt to make the public aware of “conflict diamonds” and the Kimberley process.

Hands for Africa

Amputees affected by wars involving conflict diamonds are aided by NGO’s such as Hands for Africa, to help them rebuild their life.

As a result, miners have had an increased probability of exposure to disease, such as HIV/AIDS. In fact, South Africa records the highest HIV/AIDS prevalence.The prevalence of HIV/ AIDS among miners employed in the De were unworthy of equal treatment, such as medical attention. As a result, miners have had an increased probability of exposure to disease, such as HIV/AIDS. In fact, South Africa records the highest HIV/AIDS prevalence.The prevalence of HIV/ AIDS among miners employed in the De Beers South African diamond mines were found to be 10% while the mean of the country is

estimated to about 20-30% (Rispel, et al., 2010). Common explanation linked to this high prevalence is the lack of condom usage and high interactions with sex workers (Rispel, et al., 2010). The increase in transcontinental truck trade, easing intracontinental migration, and tourism after World War II have also played significant roles in the increas of HIV/AIDS prevalence. Economic shifts related to colonial taxes have influenced the change from an agriculture based society to an industrialized, mine based society. The exposition of Africans to unsafe working conditions places them at a higher risk for contracting chronic diseases, such as AIDS. The global intimacies of the AIDS epidemic consist of the gender inequalities between men and women. Women working in the sex trade often can not bargain for the use of a condom and therefore fall more susceptible to contracting the disease. The prevalence of HIV/AIDS in South Africa is clearly illustrated in the map by Seager. South Africa led the world in HIV/AIDS related in deaths in 2005 with 6,153 deaths compared to the second highest rate in Zimbabwe of nearly half at 3,361 people (Seager). South Africa also leads in highest prevalence of child orphans due to HIV/AIDS with a rate of 1.2 million children, making these children susceptible to sex work or early life in mines (Seager).

Blood Diamond Movie Poster

Awareness of Blood Diamonds was also increased through media, such as the film starring Leonardio DiCaprio.