Diamonds

=DIAMONDS IN SIERRA LEONE = By: Renee Horn, Shane Conaway, Stephanie Lim, Brianne Washington, Anthony DiEleuterio, and Kelsie Jones



=History of Diamonds =  - Diamonds have been prized for centuries - The First diamonds were found in India and Boreno, and then in early 18th century diamonds were found in Brazil - In the late 1860’s the first African diamonds were found - They produced more diamonds then India had in the last 2,000 years - The first Sierra Leone diamonds were found in the 1930s - Considered to be the best quality diamonds in the world

//De Beers: //
 - London based company - Over two-thirds of the world’s company comes from this one company. - The company used its dominant position to manipulate the international diamond market throughout the 20th century. - By 1982, they marketed diamonds from all over the world. -Soviet Union, United States of America, Japan **Strategy **  - De Beers convinced independent producers to join its single monopoly, putting more diamonds in the market that are similar to those of producers who refused to join the cartel. - Purchased and stockpiled diamonds produced by other manufacturers in order to control prices through supply. **De Beers in Sierra Leone **  - Sierra Leone was a colony of Great Britain - In 1935, De Beers legally took complete control over all the mining of diamonds in Sierra Leon. (Illicit mining still occurred with Lebanese traders ) - In 1961 Sierra Leone gained independent of Great Britain - 1968, Siaka Stevens was elected, nationalizing all of the mines, creating National Diamond Mining Co. with Lebanese business man Mohammed - After Stevens retired, De Beer sold all of its Sierra Leon shares to Mohammed. - The new Prime Minister, Joseph Momoh, gave much power to Mohammed in the government.

//After Math: //
 - The Civil war was stimulated in 1968 when Siaka Stevens became prime minister of Sierra Leone. - Stevens was the beginning of very corrupted leader who brought diamond production into politics. - In the 1970s and early 1980s, the economic growth rate slowed because of a decline in the mining sector and increasing corruption among government officials.

= Conflict Diamonds W hat are Conflict Diamonds?: =  Conflict diamonds are diamonds which are mined in a zone controlled by an opposition to the nationally recognized governement. These diamonds are then sold in order to fund an insurgency against the established authority. Conflict diamonds are often referred to as blood diamonds,converted diamonds, and war diamonds.

Background:
<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> Conflict diamonds were brought to attention world wide through the conflict in Sierra Leone in the 1990's. In this time, it was estimated around 4% of the worlds' diamonds production wre represented by conflict diamonds.

**<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">The Impact of Conflict Diamonds: ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">Conflict diamonds fund insurgencies with weapons to overthrow nationally recognized governments, as well as take innocent lives. Man nations where conflict diamonds ae sold depend on diamonds for their economy. Without their diamonds these countries can not economically develop.

**<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">Conflict Diamonds Today: ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">The Kimberly Process Certification Scheme was established in 2003 by the United Nations. It requires extensive examination of rough diamonds to ensure they are conflict free. Today 99% of diamonds are thought to be conflict free.

=<span style="font-family: Arial,Helvetica,sans-serif; font-size: 18pt;">De Beers in Sierra Leone = =<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> = <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> Cecil Rhodes founded the diamond company De Beers. The London based company was one the first companies involved in the mining for diamonds in Africa immediately following their discovery. By 1888, he had gained monopolistic control over the whole diamond market. When Rhodes died in 1902, De Beers controlled 90% of the world's diamond production. The diamond history of Sierra Leone began in 1935 when De Beers legally took complete control of the mining prospects in Sierra Leone for the next 99 years. Despite De Beers presence, Lebanese traders within Sierra Leone quickly discovered the immense profits that could be made by smuggling diamonds out of the country. Today, over two thirds of the world’s diamonds come from one company, De Beers. The Diamond Trading Company, the rough diamond sales and distribution arm of the De Beers Group, sorts, values and sells approximately 40% of the world’s rough diamonds by value.

<span style="font-family: arial,helvetica,sans-serif; font-size: 24px; line-height: 36px;">**Positive Effects:**

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">mining is the most important industries
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">Kenema-the discovery of diamond mines in 1931 drastically changed the economy of Kenema and surrounding countries.
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">2005 diamond exports reached $140 million-a 70% increase since the Government regained control after the civil rights
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">diamonds are half of Sierra Leone's exports.

=<span style="font-family: Arial,Helvetica,sans-serif; font-size: 18pt;">Negative Effects: = <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> The negative effects of diamonds on the citizens of Sierra Leone and other diamond bearing countries are countless.

Blood diamonds, often called conflict or converted diamonds, "are mined in areas that are controlled by forces or factions that are opposed to legitimate and internationally recognized governments." (Campino, 2001)

**<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">Fund Rebel Groups ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">helps them finance arms, purchase war supplies, and other illegal activities
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">includes the purchase and trade of drugs such as cocaine and heroine.
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">happens through illicit diamond smuggling, causing conflict between Sierra Leone, Liberia, and Angola

**<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">Leads to Government Corruption ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> **<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">War Over Diamonds ** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">officials are often bribed through negotiation with rebel groups such as the RUF of Liberia
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">leads to the mismanagement of diamond resources
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">Siaka Stevens, 1968 prime minister of Sierra Leone, made large profit out of diamond mining and trading.
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">Stevens was the first person to officially connect the diamond mines to political power and profit.
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">encouraged illicit mining to gain political power
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">Civil War of Sierra Leone between 1991 and 1999 cost 75,000 lives and made 500,000 Sierra Leoneans become refugees
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> rebels have acted violently towards the citizens
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">children were abducted, beaten, gang raped, starved, tortured, and forced to walk long distances while carrying heavy loads.
 * <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">mutilation is often used as a punishment



=<span style="font-family: Arial,Helvetica,sans-serif; font-size: 18pt;"> New Laws: The Kimberly Process: = <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> The Kimberley process started when Southern African diamond-producing states met in Kimberley, South Africa, in May 2000, to discuss ways to stop the trade in ‘conflict diamonds’ and ensure that diamond purchases were not funding violence.

The Kimberly Process is a joint governments, industry and civil society initiative to stem the flow of conflict diamonds – rough diamonds used by rebel movements to finance wars against legitimate governments. The trade in these stones has fuelled decades of conflicts in countries such as Angola, Cote d'Ivoire, the Democratic Republic of the Congo and Sierra Leone. The Kimberley Process Certification Scheme (KPCS) has extensive requirements on its members to enable them to certify shipments of rough diamonds as ‘conflict-free’. As of November 2008, the KP has 49 members, representing 75 countries, with the European Community and its Member States counting as an individual participant.

=<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">Acts enforced in 2009: = <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Registration of Customary Marriage and Divorce Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Appropriation Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Payment Systems Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Home Mortgage Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Companies Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Goods And Services Tax Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Bankruptcy Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Telecommunications Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Cheiftaincy Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The National Youth Commission Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">The Finance Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">**Enforcers:** <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">Sierra Leone has police men to enforce the laws that they have, but the governement lacks on a strong legal system. The Registration of Customary Marriage and Divorce Act The Appropriation Act The Payment Systems Act The Home Mortgage Act The Companies Act The Goods And Services Tax Act The Bankruptcy Act The Telecommunications Act The Cheiftaincy Act The National Youth Commission Act The Finance Act <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;">

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> =<span style="font-family: Arial,Helvetica,sans-serif; font-size: 18pt;">Sources = <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;"> <span style="font-family: Georgia,serif; font-size: 22.5pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">"Background Note: Sierra Leone". U.S Department, August 2009. Web. 16 Dec. 2009 http://www.state.gov/r/pa/ei/bgn/5475.htm <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">Campino, A.F. (2001). Sanctions and war. Conflict Diamonds, Retrieved from http://www.un.org/peace/africa/Diamond.html <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">Johnson, E. (2002, December 06). Blood diamonds: the conflict in sierra leone. Retrieved from http://www.stanford.edu/class/e297c/Conflict%20in%20Sierra%20Leone.htm <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">SIERRA LEONE. (2009). Cia. Retrieved (2009, December 16) from https://www.cia.gov/library/publications/the-world-factbook/geos/sl.html <span style="font-family: Arial,Helvetica,sans-serif; font-size: 15pt;"> <span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">"Sierra Leone/ Diamonds" Uniosil. Unisoil, 2009. Web. 16, Dec. 2009 http://www.uniosil.org/Sierra-Leone-Diamonds.html

<span style="font-family: Arial,Helvetica,sans-serif; font-size: 16pt;">Smillie, I., Gberie, L., & Hazleton, R. (2000). Sierra leone: diamonds and war. Africa Policy E-Journal, Retrieved from http://www.africaaction.org/docs00/sl0001.htm