Disclosures Personal Relationships with a Commercial Interest: None Discussion in the presentation of “off-label” (unapproved use of substances / products: None

The Adverse Economic, Health, Environmental, and Human Rights Consequences of the Global Diamond Trade Martin Donohoe

Diamonds Symbols of wealth, power, love, and magical powers Created from carbon early in the earth’s history under extreme temperature and pressure –Industrial uses: cutting, chemically inert, transmits many wavelengths of light, can be tweaked to hold an electric charge Discovered in India around 800 B.C. Commercial mining began in 1866 in South Africa

Diamond Production Botswana, Australia, Zaire, Russia and South Africa major mining countries Antwerp, Tel Aviv, New York and Mumbai (Bombay) major trading centers Most cutting done in Tel Aviv, Mumbai, New York and Thailand Major retail markets U.S. (48% of diamond jewelry) and Japan

The US Diamond Market, 2005 $900 million worth of rough diamonds and $15 billion worth of polished diamonds imported Retail sales = $334 billion

The Diamond Engagement Ring Diamond engagement ring introduced in 1477 (Archduke Ferdinand → Mary of Burgundy) De Beers Mining Company –Founded by Cecil Rhodes in 1888

Cecil Rhodes (Rhodesia, Rhodes Scholarship, DeBeers Mining Company) “We must find new lands from which we can easily obtain raw materials and at the same time exploit the cheap slave labour that is available from the natives of the colonies. The colonies would also provide a dumping ground for the surplus goods produced in our factories.”

Diamond Rings 1939: DeBeers hires N.W. Ayer and Company to make diamonds “a psychological necessity…the larger the diamond, the greater the expression of love.” –Secret engagements popularized (men spend more than women) By 1942, 80% of engagements in U.S. consecrated with diamond rings (still true today) Diamonds first worn by stars to the Oscars in 1942

Diamond Rings 1947: “A diamond is forever” slogan born –Jewelers instructed to tell (pressure?) men - who buy 90% of all diamonds – to spend at least 2 months salary on the ring Later: Anniversary diamonds

Pet Jewelry: The Diamond Dog Collar

Diamond Rings 1999: Advertising Age magazine declares “A Diamond is Forever” slogan the most effective of the 20 th Century –Recognized by 90% of Americans 2003: De Beers begins to market diamonds to single women –“Your left hand says ‘we,’ your right hand says ‘me.’”

Diamonds: Profits and Losses 120 million carats rough diamonds mined for jewelry per year weigh 24 tons, worth approximately U.S.$14 billion –1 carat diamond retails for $350-$750 in the U.S. Cost less than $2 billion to extract Ultimately sell for over $50 billion

Diamonds: Profits and Losses Workers desperately poor but hoping to strike it rich in “casino economy” –1 million in Africa –Work under dangerous, unhealthy conditions for pittance Diamonds may be embedded in asbestos Workers suffer from cancer, leukemia, silicosis

Diamonds: Profits and Losses Middlemen, diamond dealers and exporters earn the lion’s share of profits –Most foreign nationals –Very little profit re-invested in local communities

Diamonds: Human Rights Abuses, Conflict and Terrorism Mine owners violate indigenous peoples’ rights via destruction of traditional homelands and forced resettlement Mining hastens environmental degradation of ecosystems already under severe stress

Diamonds: Human Rights Abuses, Conflict and Terrorism Diamonds have been used by rebel armies in the Democratic Republic of the Congo, Angola, Liberia, and Sierra Leone to pay for weapons used to fight brutal civil wars –3.8 million deaths –Child soldiers –Forced labor –Sex slavery, HIV –Terrorize local populations (e.g., RUF in Sierra Leone killed and mutilated thousands via amputations with machetes and axes in 1990s)

Diamonds: Human Rights Abuses, Conflict and Terrorism Al Qaeda and Hizbollah have used diamond monies to: –Fund terror cells –Hide money targeted by financial institutions –Launder profits from criminal activity –Convert cash into a commodity that is easily transportable and holds its value

Diamonds: Human Rights Abuses, Conflict and Terrorism Smuggled and illicit conflict diamonds may amount to as much as 10-15% of diamond jewelry sold worldwide –U.S. State Dept. 20% –Global Witness

Alternatives and Solutions Diamonds: –Consider alternatives to traditional engagement ring Cubic zirconium Synthetic/cultured diamonds – over 75,000 lbs produced each year worldwide LifeGems (diamonds created from carbon captured during cremation of human and animal remains!) Other

Alternatives and Solutions Diamonds: –Purchase only verifiable conflict-free diamonds cut, color, clarity, and conflict –Query jewelers, consumer education, boycotts, protests, shareholder activism Diamond industry supports self-regulation

Alternatives and Solutions Diamonds: Kimberly Process Certification Scheme –Requires rough controls to assure conflict-free diamonds –Governments license miners –Diamond traders utilize sealed, tamper-proof containers –Integrated computer databases in importing and exporting countries catch discrepancies

Alternatives and Solutions Diamonds: Kimberly Process Certification Scheme –Importing countries enact strict customs regulations, backed by thorough inspections and harsh penalties –Supported by diamond industry and UN General Assembly –Involved countries (71) slow and often ineffective in enacting Scheme

Symbols of Love: Alternatives and Solutions U.S. Clean Diamond Act of 2003 –Mandates participation in Kimberly Process Certification scheme –Money from fines (up to $10,000 for civil and $50,000 for criminal penalties) and seized contraband earmarked for victims of armed conflict –Implementation slow USA Patriot Act includes anti-money laundering measures

Alternatives and Solutions Amnesty International/Global Witness survey –½ of companies failed to respond –Only 38% of companies responding able to provide a meaningful account of their policies –Helzberg Diamond Shops, Sterling (Signet), and Tiffany and Co. have most comprehensive policies

Safe Diamonds (?)

Alternatives and Solutions Consider alternative tokens of affection –Homemade gifts (cards, photo collages, videos, poems, meals, home improvement projects) –Donations to charities –Eco-jewelry made from recycled materials by indigenous peoples Profits returned to local communities, providing wide-ranging social and economic benefit

Conclusions Diamonds as symbols of love are cultural constructs perpetuated in part by the persuasive marketing efforts of multinational corporations Production involves significant damage to local communities and the environment and harms men, women and children

Conclusions Production supports human rights abuses, armed conflict, and even terrorism Symbols of love should not be constant reminders of death and destruction –Consider alternative symbols of love –Work for social justice and change

Paper/References Donohoe MT. Flowers, diamonds, and gold: The destructive human rights and environmental consequences of symbols of love. Human Rights Quarterly 2008;30: