Conflict Diamonds and Conflict Diamonds and the Role of the United the Role of the United

States GovernmentStates Government

Catherine Picard. Ph.D.Catherine Picard. Ph.D.

Bureau of African AffairsBureau of African Affairs

U.S. Department of StateU.S. Department of State

Why is State Why is State Department interested Department interested in diamonds?in diamonds? EconomicsEconomics

SecuritySecurity

Development Development

Diamond StatisticsDiamond Statistics

““My neck leash was My neck leash was funding a rebellion…” funding a rebellion…”

““Conflict diamonds” are defined as rough Conflict diamonds” are defined as rough diamonds used by rebel movements or diamonds used by rebel movements or their allies to finance armed conflicts their allies to finance armed conflicts aimed at undermining legitimate aimed at undermining legitimate governments. governments.

During 1990s, 4%-15% of rough diamondsDuring 1990s, 4%-15% of rough diamonds

Angola, Sierra Leone, Liberia, DRC Angola, Sierra Leone, Liberia, DRC

U.S. Diamond Trade ActU.S. Diamond Trade Act

Getting to Kimberley: Getting to Kimberley: 1998 -- 20021998 -- 2002

Advocacy Advocacy CampaignsCampaigns

Industry buy inIndustry buy in Governments joinGovernments join UNGA mandates UNGA mandates

negotiationsnegotiations KP goes “live” in KP goes “live” in

20032003

KP Requirements – KP Requirements – More than a piece of More than a piece of paper?paper?

The KP in PracticeThe KP in Practice

80 countries + 80 countries + observersobservers

““Voluntarily mandatory”Voluntarily mandatory”

Decision-MakingDecision-Making

GovernanceGovernance

Administrative SupportAdministrative Support

EnforcementEnforcement

Tackle illicit cross-border Tackle illicit cross-border tradetrade

Share informationShare information

TrainingTraining

Focus on Artisanal ProductionFocus on Artisanal ProductionIllegitimate financingIllegitimate financing= = Illegitimate diamondsIllegitimate diamonds

ChallengesChallenges

Definition of a Definition of a Conflict DiamondConflict Diamond

EnforcementEnforcement

SourcingSourcing

Beyond rough?Beyond rough?

KP ConcernsKP Concerns

Decision-making processesDecision-making processes DefinitionDefinition Internal ControlsInternal Controls Staffing/SecretariatStaffing/Secretariat ““Unfunded Mandate”Unfunded Mandate” Political and economic dimensionsPolitical and economic dimensions

Artisanal Diamond Artisanal Diamond ConcernsConcerns

Legal RightsLegal Rights

Child Labor, Environmental Child Labor, Environmental and Fair Tradeand Fair Trade

Rough vs. Cut and Polished Rough vs. Cut and Polished DiamondsDiamonds

ExploitationExploitation

Post-Conflict VulnerabilitiesPost-Conflict Vulnerabilities

Reforming the KPReforming the KP

The definitionThe definition Monitoring & EnforcementMonitoring & Enforcement Addressing non- complianceAddressing non- compliance Decision-makingDecision-making Artisanal SectorArtisanal Sector

USG EngagementUSG Engagement

Kimberley Process Kimberley Process USAIDUSAID U.S. Geological Survey (USGS)U.S. Geological Survey (USGS) CensusCensus Treasury (OFAC)Treasury (OFAC) United NationsUnited Nations Multi-stakeholder fora (OECD)Multi-stakeholder fora (OECD)