DISCUSSION

Diamonds Are a Terrorist's Best Friend

Written by George Anderson

By George Anderson

A new movie, Blood Diamond, starring Jennifer Connelly, Leonardo DiCaprio and Djimon Hounsou has Americans looking at bling in a whole new light.

The movie looks at how rebel groups have used proceeds from illegally traded diamond sales to finance wars in central and western Africa.

These gems, known as conflict or blood diamonds, have been defined by the United Nations (UN) as those "that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments, or in contravention of the decisions of the Security Council."

The human cost of the blood diamond trade has been immense. During the late nineties, it was estimated that as much of five percent of diamond revenues were generated through the illegal sale of blood diamonds. Conflicts in Sierra Leone, Angola, Liberia, Cote d'Ivoire, and the Democratic Republic of Congo where thousands have been killed and millions displaced have been financed largely on the blood diamond trade.

The global diamond industry uses the Kimberly Process Certification System to track diamonds sold around the globe. The voluntary system now has 71 governments participating and industry sources say 99 percent of diamonds sold are from legitimate sources. Three African countries have been designated as traders in conflict diamonds. These are the Republic of Congo, Liberia and Cote d'Ivoire.

Critics of the present system say its voluntary nature means no independent verification takes place. This, they say, brings into question whether the system is working as effectively as advertised.

Human rights groups such as Amnesty International and Global Witness contend the system has problems. The groups point to a Sep. 2006 Government Accountability Office report that found problems with the enforcement of the Kimberly Process in the U.S.

"It's unconscionable for us for the sake of vanity to contribute to the destruction of a country," Ms. Connelly told The New York Times. "So I think trying to make more effective the system of warranties is a pretty clear choice."

The movie has evidently gotten the attention of consumers. According to Carley Roney, editor in chief of the theknot.com, "There's extensive discussion going on our message boards. Many women are saying, 'This is supposed to be a symbol of all things good and I don't want to look down on my finger and think of women and children being killed.' It undermines the entire meaning of that ring."

While many may becoming aware, the majority of consumers in a poll by Ms. Roney's site did not know what a blood or conflict diamond was.

Most jewelers may know what a blood diamond is but that doesn't mean they have any idea if the product they receive is legal or illegal. Some don't care.

"I'm not here to save the world. I'm here to make life beautiful," said Raymond Moutran, a jeweler in Los Angeles.

"One guy wanted to know if the diamond was from Africa and whether it was from an area where people are tortured," Mr. Moutran said. "I said, 'I don't know.' He didn't buy. I don't need to lie to make a living."

Russ Varon, the chief financial officer of Morgan's Jewelers, said his company began receiving invoices from suppliers two years ago that said the diamonds purchased by his company were conflict free.

Discussion Questions: Will the movie Blood Diamond affect how consumers buy diamond jewelry? How do retailers deal with an issue that is, in this case, clearly beyond their ability to control? Do they watch business walk away as did Raymond Moutran or do they take other steps?

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