Navigating the Future of Ethical Diamonds: The World Diamond Council’s Push for Kimberley Process Reform
In a significant move to ensure the continued integrity and relevance of the global diamond trade, the World Diamond Council (WDC) recently issued a press release advocating for a crucial open discussion regarding comprehensive reforms to the Kimberley Process (KP). This timely call to action underscored the WDC’s commitment to evolving the standards that govern the industry, especially in the lead-up to the KP Plenary meeting, which was scheduled to be held in Brisbane, Australia, from December 9-14, 2017. As the authoritative voice of the international diamond industry, the WDC urged all Kimberley Process participants to engage in a constructive dialogue. The objective? To address the pressing issues confronting the KP, thereby ensuring its enduring mission and its fundamental duty of care to communities and consumers alike, particularly concerning the supply of conflict-free diamonds.
The Imperative for Change: A Call from the World Diamond Council
The WDC’s exhortation highlights a pivotal moment for the diamond sector. Their message is clear: while the Kimberley Process has achieved remarkable success, its framework must adapt to modern challenges and expectations. Stephane Fischler, then Acting President of the WDC, articulated this sentiment with profound conviction. He stated, “With the KP, we have much to be proud of having virtually eliminated conflict diamonds from the legitimate supply chain.” This acknowledgment serves as a testament to the KP’s foundational impact since its inception. However, Fischler quickly moved to emphasize that “our job is not over and we have more to do together to evolve the efficiency of decision making within the KP in order to maintain credibility and effect meaningful change in our shared goal of conflict resolution.” This perspective underlines a proactive approach, recognizing that continuous improvement is essential for any global regulatory body to remain effective and credible.
Fischler’s words resonated with an urgent appeal to all KP participants: to approach the matter of reform with a sense of immediacy. He expressed confidence that, through collaborative effort during the KP Plenary, positive and impactful outcomes were not just desirable but entirely achievable. The WDC’s stance reflects a broader understanding within the industry that maintaining the highest standards of ethical sourcing is not merely a compliance issue, but a moral imperative that safeguards the livelihoods of millions and preserves consumer trust. The organization’s persistent advocacy for reform is rooted in its foundational belief in the importance of both the Kimberley Process and its complementary mechanism, the WDC System of Warranties (SoW), which it champions as “a critical tool in the fight against conflict diamonds.” These two mechanisms, working in tandem, form the bedrock of the industry’s efforts to ensure a clean and transparent supply chain.
Unpacking the Kimberley Process: A Foundation for Conflict-Free Diamonds
To fully appreciate the significance of the WDC’s reform proposals, it’s crucial to understand the Kimberley Process itself. The KP is an international certification scheme that originated from the urgent need to address the issue of “conflict diamonds” – rough diamonds used by rebel movements to finance wars against legitimate governments, primarily in Africa, during the 1990s. The process was established in 2003, following resolutions by the United Nations General Assembly, bringing together governments, industry, and civil society observers. Its core mandate is to prevent the flow of conflict diamonds into the mainstream legitimate rough diamond trade, thereby disrupting a key source of funding for illicit activities and human rights abuses.
The Kimberley Process Certification Scheme (KPCS) sets out specific requirements for member states to certify shipments of rough diamonds as “conflict-free.” This involves a robust system of internal controls over diamond production and trade, including detailed record-keeping, secure transportation, and the issuance of unique, tamper-resistant certificates for each shipment. Participation in the KPCS is mandatory for countries wishing to trade in rough diamonds with other members. By strictly adhering to these protocols, the KP has been instrumental in dramatically reducing the proportion of conflict diamonds in the global supply chain, which at one point constituted a significant percentage of all traded diamonds. The success of the KP is often cited as a powerful example of what can be achieved when disparate stakeholders unite for a common ethical goal.
Complementing the intergovernmental framework of the KP, the World Diamond Council developed its own System of Warranties (SoW). While the KP focuses on the initial stages of the supply chain, from mine to export, the SoW extends these principles throughout the entire diamond pipeline, covering rough, polished, and jewelry diamonds. The SoW requires all buyers and sellers of rough and polished diamonds to pass a written statement on all invoices, guaranteeing that the diamonds they are trading are conflict-free, based on the KPCS. This self-regulatory mechanism is crucial because it ensures that the integrity established by the KP at the border is maintained as diamonds move through various stages of cutting, polishing, and manufacturing, ultimately reaching the consumer. The SoW thus reinforces the KP’s objectives, providing an additional layer of assurance and accountability within the industry.
Three Pillars of Reform: Strengthening the Kimberley Process for Tomorrow
Recognizing that even highly effective systems must evolve, the WDC outlined three critical areas where reform is deemed necessary to ensure the continued success and relevance of the Kimberley Process and its vital work. These proposed changes are not about dismantling the KP but about fortifying it against new challenges and expanding its ethical footprint in an increasingly conscious global marketplace.
1. Broadening the Scope: Redefining “Conflict Diamonds”
One of the most significant and often debated reform proposals involves broadening the scope of the KP within the discussion on the expansion of the definition of conflict diamonds. The original definition, narrowly focused on diamonds funding rebel movements against legitimate governments, while highly effective for its initial purpose, has been perceived by some as insufficient in addressing a wider array of human rights and ethical concerns associated with diamond extraction and trade. The WDC strongly advocates for a tangible expansion of this definition with the explicit aim of strengthening the KPCS. This expansion could encompass issues beyond armed conflict, such as grave and systemic human rights abuses, egregious labor practices (including child labor and forced labor), and severe environmental degradation directly linked to diamond mining.
The WDC has expressed its readiness to actively participate in any expansion of the scope, provided it is based on constructive suggestions from KP Participants. This forward-looking step is anticipated to significantly increase the likelihood of fostering safe and secure working conditions, promoting fair labor practices, and supporting sustainable development initiatives within diamond-producing communities. By embracing a more comprehensive understanding of “conflict,” the KP could better align with evolving global expectations for corporate social responsibility and ethical sourcing, thereby reinforcing consumer confidence in the entire diamond value chain. Such an expansion would transform the KP from solely a mechanism to prevent warlord funding into a broader instrument for human dignity and environmental stewardship in the diamond sector.
2. Establishing a Permanent Secretariat: Enhancing Operational Efficiency
Another crucial area for reform highlighted by the WDC is the establishment of a permanent secretariat, ideally based in a neutral country. The current structure of the Kimberley Process relies on a rotating chairmanship, which, while promoting broad participation, often leads to challenges in maintaining institutional memory, ensuring consistent administrative support, and providing long-term strategic direction. A permanent secretariat would be a game-changer for the KP, offering a centralized, dedicated, and professional body to manage its daily operations.
This secretariat would ensure the preservation of institutional memory, crucial for continuity across different chairmanships. It would provide dedicated staffing for technical and administrative support to the daily work of the KP and its various bodies, enhancing efficiency and responsiveness. Furthermore, the WDC envisions the creation of a dedicated experts team within this secretariat, tasked with managing and effectively implementing KP decisions and restrictions, supporting the restoration of KPCS implementation in sanctioned countries, and securing the integrity and relevance of the KPCS as the only universal mechanism to ensure sustainable sourcing. A permanent secretariat would also significantly enhance the efficiency of the Peer Review system, offer robust support for development projects in Participant countries, and provide meaningful capacity building on the ground where it is most needed. All of these aspects are deemed absolutely crucial to the consistent and effective implementation of the Kimberly Process Certification Scheme. To ensure its operational independence and financial viability, the WDC recommends that this secretariat be funded voluntarily by KP Participants together with the Observers, and be ready to act 24/7 on all KP matters, reflecting the dynamic nature of the global diamond industry.
3. Reviewing Core Standards: Elevating Minimum Requirements
The third critical area for reform outlined by the WDC focuses on reviewing the current KPCS core document and standards. The overarching goal here is to strengthen the KPCS minimum standards by making the peer review mechanism more robust and effective. The peer review system is a cornerstone of the KP, involving review visits and reports that assess how effectively member countries are implementing the KPCS. However, the efficacy of this system can vary, and there is a recognized need to elevate its rigor and enforcement capabilities.
Strengthening the minimum standards would involve a comprehensive evaluation of existing guidelines, potentially introducing clearer benchmarks for compliance, more explicit criteria for identifying non-compliance, and more stringent accountability measures. A stronger peer review mechanism could entail more frequent and in-depth review visits, increased transparency in reporting findings, and a more decisive process for addressing recommendations and imposing consequences for persistent failures in implementation. This proactive review and enhancement of standards would ensure that the KPCS remains a gold standard for ethical diamond sourcing, continually improving its ability to safeguard the integrity of the supply chain and adapt to new challenges, thus upholding its credibility in the eyes of governments, industry, and consumers.
Beyond Governments: Shared Responsibility and Industry Self-Regulation
Fischler’s concluding remarks powerfully underscored a fundamental principle: “Ensuring that conflict diamonds remain out of the global supply chain is a responsibility that is shared by all parties, not just governments.” This highlights the crucial role of the private sector and civil society in upholding ethical standards. It is precisely why, in addition to advocating for an expanded scope for the KP, the further implementation of the diamond industry’s system of self-regulation, the WDC System of Warranties (SoW), remains an equally important objective for the WDC. The SoW is uniquely positioned to regulate diamonds from their rough state, through the entire process of cutting and polishing, and across the entire diamond pipeline until they reach the final consumer. This comprehensive approach ensures that ethical assurances are maintained at every single step, creating an unbroken chain of responsibility.
In line with this commitment to self-regulation and continuous improvement, the WDC also announced that the organization’s diamond industry members were diligently working towards finalizing updated Guidelines that would serve to significantly enhance and update the SoW. These updated Guidelines are a testament to the industry’s dedication to evolving its best practices and will be distributed for public review to Non-Governmental Organizations (NGOs) and other interested parties in the Spring of 2018. This public consultation process demonstrates the WDC’s commitment to transparency and collaboration, ensuring that the updated SoW reflects a broad consensus and effectively addresses contemporary ethical challenges within the diamond supply chain.
Transparency and Education: Empowering Consumers and Communities
Parallel to its efforts in reform and self-regulation, the World Diamond Council also recently launched a new and improved version of its influential website, diamondfacts.org. The primary purpose of this updated platform is to share new and meticulously updated facts and information about the immense benefits that diamonds bring to local communities around the world. This initiative is a vital component of the WDC’s broader strategy to enhance transparency and educate the public. By providing accessible and accurate information, diamondfacts.org aims to counteract misconceptions and highlight the significant socio-economic contributions of the diamond industry, including job creation, infrastructure development, healthcare, and education in often remote and developing regions. This proactive communication strategy empowers consumers with knowledge, enabling them to make informed purchasing decisions and appreciate the positive impact of ethically sourced diamonds.
The Path Forward: A Vision for a Resilient Diamond Industry
The World Diamond Council’s proactive engagement in advocating for Kimberley Process reforms signifies a mature and responsible diamond industry, keenly aware of its societal obligations and the evolving expectations of the global consumer. The proposed pillars of reform—broadening the definition of conflict diamonds, establishing a permanent secretariat, and strengthening core standards—are not mere incremental adjustments but fundamental shifts designed to future-proof the KP. These changes aim to enhance the Process’s efficiency, expand its ethical scope, and ensure its unwavering credibility. By championing collaboration between governments, industry, and civil society, and by continuously improving its self-regulatory mechanisms like the System of Warranties, the WDC is leading the charge toward a more transparent, ethical, and sustainable diamond supply chain. The ultimate goal is to safeguard the inherent value of diamonds, not just as symbols of love and luxury, but as powerful catalysts for positive change and development in communities across the globe, ensuring that every diamond sparkles with integrity.