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african trade diamond
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Koehl Simmons
November 20, 2017
Economic Geography
The African Diamond Trade
Introduction
The African Diamond Trade is a large cycle of exploitation. An estimated 65% of diamonds mined worldwide originate in Africa (Cahill 2009). In 2016, the U.S. diamond industry grew 4% to reach $40 billion, approximately half of a global $80 billion industry (DeBeers Group 2017). But how do these diamonds make it from African river banks to American engagement rings? According to Time Magazine, there are 6 steps that take diamonds from the ground to the jewelry store; exploration, mining, sorting, cutting and polishing, manufacturing, and retailing (John and Jones 2015). Each of these steps adds value to the final product that is offered in jewelry stores worldwide but this value isn’t added fairly to those who create the most value.
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An estimated 1 million diamond miners in Africa earn less than $1 a dollar a day (Brilliant Earth n.d.) Children as young as 8 forgo school for daily wages ranging between $0.15- $0.60 (The International Human Rights Clinic at Harvard Law School 2009). According to Adele Farquhar, a man fighting for legal ownership of a diamond mine, the problem isn’t people mining for precious diamonds, it’s those buying the diamonds originating in conflict areas; "People think it's a Zimbabwe problem but they forget that there is huge international complicity. You can't stop the Zimbabweans until you stop the money men. The people in Zimbabwe are getting next to nothing for these diamonds. The guy with the pick and shovel is literally earning $5. The guy to go and find is the one making $1,000. Go and look at the money and see who else is benefiting. That's why there's no momentum to stop this thing” (Cahill 2009). According to Time, the owner of the mines usually takes around 70% of the value when diamonds are sold to
Deep within African mines, elusive diamonds lay enveloped in the Earth’s crust. Possessing much influence, beauty, and tension, nature’s hardest known substance causes parallel occurrences of unity and destruction on opposite sides of the globe. Diamonds, derived from the Greek word "adamas", meaning invincible, are formed deep within the mantle, and are composed entirely from carbon. Moreover, only under tremendous amounts of heat and pressure can diamonds form into their preliminary crystal state. In fact, diamonds are formed approximately 150km- 200km below the surface and at radical temperatures ranging from 900-1300 C°. When these extremes meet, carbon atoms are forced together creating diamond crystals. Yet how do these gems, ranking a ten on Moh’s hardness scale, impact the individual lives of millions of people besides coaxing a squeal out of brides-to-be? These colorless, yellow, brown, green, blue, reddish, pink, grey and black minerals are gorgeous in their cut state, but how are these otherwise dull gems recognized and harvested? Furthermore, how and why is bloodshed and violence caused over diamonds in Africa, the supplier of approximately 65% of the world’s diamonds? (Bertoni) The environmental, social, and economic impact of harvesting, transporting, and processing diamonds is crucial because contrary to popular belief, much blood has been spilled over first-world “bling”.
Spar, D. L., 2006. Markets: Continuity and Change in the International Diamond Market. The Journal of Economic Perspectives, Vol. 20, No. 3 (Summer, 2006), pp. 195-208.
In “ “Blood Diamonds” and Africa’s Armed Conflicts in the Post – Cold War Era, “ Orogun (2004) said that diamonds are referring as “clean stones”. This article explains about the black market is really happening in African. I am using this article to support how the black market of diamond trades is still not regulated, and they defined it as “licit” trade.
Final contribution of de beers to the diamond pipeline is the promotion of diamond jewelry for the industry; through advertising campaigns developed from extensive market research; trade promotional activities and jewelry design competitions
A beautiful precious diamond can last forever, but what most people do not know is that a majority of our diamonds come from Africa. The civil wars in Africa over diamonds began around 1961 and ended in 2003. Conflict diamonds were rampant and it would be difficult to say if any jewelry sold prior to 2003 was conflict free. Conflict diamonds are diamonds that have been mined and were controlled by African rebels. The rebels would use the profits from selling conflict diamonds to fund illegal activity and to purchase more weapons for their armies. While rebels had control of the diamond mines they killed approximately 4 million people and countless families were displaced.
Spar, D.L. 2006. Markets: Continuity and Change in the International Diamond Market. The Journal of Economic Perspectives. 20(3): 195-208
It’s hard to imagine that a mineral could be fueling wars and funding corrupt governments. This mineral can be smuggled undetected across countries in a coat pocket, then be sold for vast amounts of money. This mineral is used in power tools, parts of x-ray machines, and microchips but mostly jewelry. Once considered the ultimate symbol of love, the diamond has a darker story. "Blood" diamonds or "conflict" diamonds are those mined, polished, or traded in areas of the world where the rule of law does not exist. They often originate in war-torn countries like Liberia, Sierra Leone, Angola, and Côte d'Ivoire were rebels use these gems to fund genocide or other questionable objectives. Even with a system known as the Kimberly process which tracks diamonds to prevent trade of these illicit gems, infractions continue as the process is seriously flawed. The continuation of the blood diamond trade is inhuman, and unethical, and in order to cease this illicit trade further action to redefine a conflict diamond, as well as reform to the diamond certification prosess is nessasary.
In Zaire, or the Democratic Republic of the Congo, many children wake up to go mining for diamonds instead of going to school. When we think of diamonds, we tend to think of a precious gift that is a rarity which is tended to be given in proposals or other special occasions. The truth is, diamonds are quite common in west and central Africa, but to profit more off these blood diamonds the industry markets them off to be much more rare than they actually are. Blood diamonds, why are they called blood diamonds? Possibly because they are made by the bloody hands of small children who are in physical, mental, and emotional harm from working this burdensome job every day.
Hoyt, Alia. "How the African Diamond Trade Works." How Stuff Works. United Nations Department of Public Information, June 2008. Web. 25 Feb. 2011. .
There are many different types of diamonds that vary in value. Koh-I-Noor is one of the most expensive diamonds and the Cullian is another that can be bought at the price of 400 million (3,106.75 carats) and it is one of the largest diamonds found. Diamonds represent wealth, love, and elegance, while the history behind them is brutal, awful, sickening, and bloody. Millions of diamonds came out of areas that have been mining for 50-60 years. The slaves that participate in the mining process are poor; some slaves get paid a share of what they did, others work simply for food, and some work under false hopes of one day catching the big one. They were known as the “Casino economy” because sometimes they found diamonds and other times they went home empty handed (Africa’s Diamond Trade). Blood diamond slavery didn’t get the world’s attention until the late 1990’s in Sierra Leone (Diamond facts.org). Blood diamonds originated in Sierra Leone, Angola, Democra...
Many countries that give out these illegal rocks do not give the respect or compassion to their workers.“... major human rights abuses and child labour, or are beset with corruption” (Dunn). To the topic this connects because people that live in the country are being forced to work in the mines searching for these diamonds. The problem for the workers was that they were not suited for the workload they were expected to go off of. “...for the KP definition of the conflict diamonds to include ‘blood diamonds’ --or those
Santarossa, B. (2004, January 13). Diamonds: Adding lustre to the Canadian economy. Retrieved November 06, 2017, from https://www.statcan.gc.ca/pub/11-621-m/11-621-m2004008-eng.htm
The movie shows different villages in different scenarios, with rich natural colors like brown, green, red etc. The cities are portrayed as hectic and intimidating, dirty and poor. After watching the movie “Blood Diamond” Directed by Edward Zwick I realized that the main issue or problem in the movie was the blood diamonds. There are much more issues and problems in the movie but I believe this is the most important because the whole movie revolves around the blood diamonds. Blood diamonds were used in this movie and were the main focus of the movie. The reason for blood diamonds being the main economic issue or problem is because of the blood diamonds people were forced to work as slaves to find diamonds in the water so they can be used to buy guns. Blood diamonds were the cause of all of these terrible acts, people dying to search for these diamonds so they can be sold. Also the other issues of blood diamonds were that a big company was buying a lot of these conflict diamonds from Africa for really cheap, the company was Van Da Kaap. It would buy an abundance of these diamonds and store them so the diamonds they acquire seem rare and so they can stay at a high price. The economic issue with this was that the company Van Da Kaap would not tell anyone of these abundance of diamonds because than if they did tell anyone, the prices of the diamonds would fall and this is called supply and
The value of diamonds lies on their physical properties that make them suitable for many applications. Natural diamonds are only of high value if they are scarce in nature. Realizing this, De Beers Consolidated Mines was formed to control the supply of diamonds from mines across the world. The diamond market is influenced by mine production, rough diamond distribution, preparation/cutting, and retail markets. The project will be concentrating on the retail markets for diamonds and other high end jewelry.
The third determinant of the diamond – related and supporting industries looks at the industry suppliers and...