Kimberley Process at a Crossroads: WDC Urges Accelerated Reform and Expanded Definition of Conflict Diamonds
The global diamond industry, through its leading representative body, the World Diamond Council (WDC), has voiced significant concerns regarding the pace of reform within the Kimberley Process (KP) during 2018. As a pivotal tripartite collaboration involving governments, industry, and civil society, the KP stands as the cornerstone against the trade of conflict diamonds. The WDC, representing the entire diamond supply chain from rough diamond producers to polished diamond retailers, underscored these anxieties at the recent 2018 KP Plenary session held in Brussels, Belgium, advocating for a renewed commitment to its founding principles and an adaptation to contemporary challenges.
Simultaneously, the WDC has issued a robust call to all Kimberley Process participants to actively support a vital expansion of the definition of conflict diamonds. This crucial amendment is seen as essential for the KP to remain relevant and effective in an evolving global landscape, addressing a broader spectrum of illicit activities and human rights concerns within the diamond supply chain.
The Urgency of Reform: WDC’s Call for a Modernized Kimberley Process
In a formal statement, the World Diamond Council reiterated its unwavering support for the Kimberley Process Certification Scheme (KPCS), acknowledging its unparalleled success as the most effective mechanism established to eradicate the trade in conflict diamonds. However, this affirmation was tempered with a clear expression of disappointment regarding the insufficient progress made in reforming the KP’s scope during the 2018 Plenary Meeting, which concluded on November 16, hosted by the European Union.
The WDC’s concern stems from a recognition that while the KPCS has been instrumental in fulfilling its original mandate – preventing diamonds from funding rebel movements intent on overthrowing legitimate governments – the modern ethical landscape demands a more comprehensive approach. The absence of significant strides towards expanding the definition of conflict diamonds leaves the scheme vulnerable to criticism and potentially out of step with increasing consumer expectations for ethically sourced goods.
The diamond industry, keenly aware of its responsibility and the necessity of maintaining consumer trust, believes that a proactive and agile KP is paramount. Delays in reform not only hinder the scheme’s ability to address new threats but also create a perception of stagnation, which could undermine the hard-won integrity of the legitimate diamond trade. The WDC emphasized that swift, meaningful progress is not merely desirable but critical for the KP’s long-term viability and credibility.
Beyond Blood Diamonds: Redefining Conflict and Ethical Sourcing for the 21st Century
Despite the expressed concerns over the pace of reform, the WDC did acknowledge a significant positive development from the Plenary session. The final communiqué included a notable mention of the submission by the Canadian government of a proposed expanded definition of conflict diamonds. This submission was the result of a collaborative effort, aligning with proposals put forth by the WDC itself and its fellow KP observer, the Civil Society Coalition (CSC), showcasing a united front for progress.
The existing definition, narrow in its focus, primarily targets diamonds used by rebel groups to finance wars against legitimate governments. However, a broader understanding of “conflict” in the context of mineral resources now encompasses a wider range of abuses, including widespread and systematic violence, egregious human rights violations, and other forms of illicit practices that can tarnish the diamond supply chain. The proposed expansion seeks to incorporate these critical dimensions, ensuring that diamonds associated with any severe forms of violence or exploitation are identified and excluded from the legitimate market.
The WDC expressed profound hope that all Kimberley Process Participants would support this crucial amendment and contribute further insights and proposals ahead of the next KP Plenary in India in 2019. Such an expansion is not merely a bureaucratic adjustment; it is a fundamental step towards aligning the KP with modern ethical standards, strengthening consumer confidence, and fortifying the industry’s commitment to responsible sourcing practices. It represents a collective acknowledgement that the responsibility of the diamond sector extends beyond preventing financing for civil wars, embracing a more holistic view of human welfare and ethical conduct.
Positive Strides: Industry’s Commitment to Institutional Effectiveness and Transparency
Further demonstrating the industry’s commitment to evolution and enhanced institutional effectiveness, the WDC welcomed the KP Plenary’s decision to adopt all three administrative decisions proposed by the industry. These adopted measures represent tangible steps towards strengthening the operational framework and technical clarity of the Kimberley Process, reflecting a proactive approach from within the diamond sector.
The first crucial decision involves the “Establishment of a Kimberley Process Secretariat.” For many years, the KP has operated without a permanent, dedicated secretariat, relying heavily on the rotating Chair for administrative continuity. The establishment of a permanent Secretariat is a transformative step, promising greater organizational stability, consistent record-keeping, enhanced communication, and improved coordination among participants. This institutionalization will ensure that critical knowledge and procedures are maintained and transferred efficiently, irrespective of the annual change in leadership, thereby fostering greater long-term effectiveness and resilience for the entire scheme.
The second adopted decision, the “Compilation of Modifications to Technical Definitions,” addresses the vital need for clarity and standardization within the KP’s technical guidelines. As the global diamond trade evolves and new challenges emerge, precise and universally understood technical definitions are paramount. This compilation will serve as a definitive reference, reducing ambiguities, improving the consistent application of KP rules across different jurisdictions, and helping to combat illicit trade activities more effectively by ensuring a common language and understanding of diamond characteristics and associated processes.
Finally, the “Use of Unified Diamond Nomenclature and Terminology as a Best Practice” aims to harmonize the language used throughout the diamond supply chain. In an industry as complex and globalized as diamonds, consistent terminology is essential for transparency, accurate reporting, and effective communication. This decision promotes a common standard for describing diamonds, from rough extraction to polished sale, which will significantly aid in traceability efforts, streamline customs procedures, and enhance overall supply chain integrity. Collectively, these three administrative decisions unequivocally underscore the industry’s deep-seated commitment to promoting meaningful change and bolstering the institutional effectiveness of the Kimberley Process.
Protecting the Vulnerable: The KP’s Crucial Role in Artisanal Mining Communities
Stephane Fischler, President of the WDC, articulated the organization’s recognition of the Kimberley Process Certification Scheme’s (KPCS) undeniable success in addressing the issues squarely within its original mandate, particularly concerning the initial definition of conflict diamonds. He highlighted that the achievements of the past conclusively demonstrate the KPCS’s capacity not only to protect individuals in diamond mining areas from exploitation by rebel groups but also to create pathways to legitimate livelihoods and opportunities that might otherwise be nonexistent.
This protective and enabling role is particularly critical when considering artisanal and small-scale miners (ASM). These miners represent a substantial, yet often vulnerable, segment of the global diamond industry, accounting for an estimated 5-10 percent of rough diamond production by value and forming a vital part of the up to 10 million individuals globally whose livelihoods are sustained by the diamond sector. ASM communities are disproportionately susceptible to social and economic vulnerabilities, including unsafe working conditions, illicit trade networks, and limited access to fair markets.
Fischler strongly asserted that the Kimberley Process must assume a primary and proactive role in safeguarding the interests of these artisanal miners. This involves not only shielding them from potential conflict and exploitation but also actively enabling their legitimate integration into world markets. By promoting fair practices, supporting responsible mining initiatives, and ensuring transparent supply chains, the KP can help transform the lives of millions, ensuring that the wealth generated by diamonds directly benefits the communities that extract them, rather than exacerbating existing vulnerabilities. This commitment to ASM welfare is central to the ethical evolution of the diamond industry.
Enhancing Diamond Value Through Ethical Practices and Assurances
Expressing his fervent hope for the Kimberley Process to achieve “tangible progress” in its future commitment to reform, Stephane Fischler urged all KP Participants to lend their support to constructive efforts aimed at fostering incremental, yet significant, change. He passionately stressed a fundamental truth of the modern diamond market: “The value of a diamond is enhanced by the positive values that it communicates to the consumer, and we therefore believe that any effort to reinforce those values is worthy of discussion.” This statement encapsulates the industry’s understanding that ethical provenance is increasingly intertwined with a diamond’s intrinsic and perceived worth.
The WDC is particularly optimistic that a reformed and expanded KPCS will robustly “support and complement” its own strengthened System of Warranties (SoW). This enhanced SoW, ratified at the Council’s Annual General Meeting in Mumbai the preceding month, represents a significant industry-wide initiative designed to provide additional layers of assurance regarding a diamond’s ethical journey. The WDC emphasized that these warranties are crucial for recognizing the importance of maintaining and continuously building upon international standards and initiatives that provide consumers with the peace of mind they seek, particularly concerning human rights throughout the diamond supply chain.
The System of Warranties acts as a critical mechanism for industry self-regulation, requiring participants to pass on a written assurance with every invoice for rough and polished diamonds, guaranteeing that the diamonds are not conflict diamonds based on KPCS regulations and additional WDC guidelines. This dual approach – a robust, government-backed KPCS complemented by a comprehensive industry-led SoW – collectively strengthens the entire framework for ethical sourcing, reinforcing consumer confidence by demonstrating an unwavering commitment to both preventing conflict and upholding broader human rights principles.
Acknowledging Leadership and Paving the Way Forward for India
The WDC President extended profound praise for the critical role played by Hilde Hardeman, the outgoing Chair of the Kimberley Process, and her dedicated team at the European Union. Fischler specifically highlighted their positive leadership and the tremendous effort invested over the past year, often navigating through challenging and complex circumstances. Her stewardship during a period of intense debate and calls for reform was instrumental in keeping the process moving forward and fostering constructive dialogue.
As the leadership baton passes, Fischler also extended his best wishes to the incoming Chair, India, emphasizing the WDC’s steadfast commitment to achieving meaningful reforms and its readiness to provide unwavering support to the KP in addressing its forthcoming challenges. India, as a major global hub for diamond cutting and polishing, brings a unique perspective and significant influence to the role, and its leadership is anticipated to play a crucial part in steering the KP towards its next phase of evolution.
In a particularly heartfelt tribute, the WDC President paid special homage to Mark Van Bockstael, who is retiring after an extraordinary 16 years as the revered Chair of the KP’s Working Group of Diamond Experts. Fischler lauded Van Bockstael’s tireless dedication, stating, “There are literally millions of people whose lives and livelihoods were dramatically improved by the tireless work of Mark and his colleagues, who created almost from scratch the methodology and knowledge-base on which the KP is founded.” This recognition underscores the foundational contributions of Van Bockstael, whose technical expertise and relentless efforts were crucial in establishing the very scientific and forensic basis for identifying and tracking diamonds, thereby underpinning the entire KPCS. His pioneering work in developing the technical standards and guidelines was not just academic; it had a tangible, positive impact on countless individuals reliant on the legitimate diamond trade. “He is a pioneer and one of us, and we are tremendously proud of him and his achievements,” Fischler concluded, encapsulating the deep respect and admiration for Van Bockstael’s legacy.
A Unified Vision for a Responsible Diamond Industry
The World Diamond Council’s recent pronouncements paint a clear picture of an industry grappling with the imperative to evolve. The call for accelerated reform within the Kimberley Process and, crucially, the expansion of the conflict diamond definition, are not merely procedural demands but reflect a deep understanding of shifting global ethics and consumer expectations. While recognizing the monumental achievements of the KPCS in its original scope, the WDC, alongside civil society and progressive governments, advocates for a more inclusive definition that encompasses broader human rights abuses and acts of violence that can taint the diamond supply chain. This proactive stance aims to reinforce consumer confidence and secure the long-term viability of the legitimate diamond trade.
The adoption of the three administrative decisions—establishing a permanent Secretariat, compiling technical definition modifications, and unifying terminology—further demonstrates the industry’s commitment to strengthening the KP’s operational backbone and enhancing its transparency. Moreover, the WDC’s emphasis on protecting artisanal and small-scale miners underscores a holistic approach to ethical sourcing, recognizing their critical role and inherent vulnerabilities within the diamond ecosystem. Combined with the WDC’s own robust System of Warranties, these efforts collectively forge a more comprehensive framework for ethical assurance.
As the Kimberley Process looks towards the future under India’s chairmanship, the collective efforts of governments, industry, and civil society remain paramount. The invaluable contributions of leaders like Hilde Hardeman and pioneers like Mark Van Bockstael have laid a formidable foundation. However, the ongoing challenges necessitate continued vigilance, adaptability, and unwavering commitment to the KP’s core mission, ensuring that every diamond tells a story of positive impact and legitimate prosperity. This unified vision for a responsible diamond industry is not just an aspiration but an active pursuit, essential for the welfare of communities and the integrity of the sector worldwide.
News Source: gjepc.org