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Home News A Vulnerability in the System

A Vulnerability in the System

by Madonna

The global diamond industry faces a critical moment as it seeks to address the challenges of conflict diamonds and ethical sourcing. However, the European Union’s proposal to centralize diamond control in Antwerp has raised concerns about its impact on sovereignty and the efficiency of the Kimberley Process (KP), the system that aims to prevent conflict diamonds from entering the market.

In a statement following the KP Plenary meeting, the European Union criticized my comments as “regrettable,” claiming that the Kimberley Process had “failed” for the third consecutive year to address the consequences of Russia’s actions in Ukraine on the diamond sector.

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The Kimberley Process was created to unite governments, civil societies, and the diamond industry in combating conflict diamonds. However, it does not have a mandate to impose political sanctions. Given its success in tracking diamonds from source to market, the EU should question why it seeks to replace this trusted, decentralized system with an untested and unneeded alternative. Furthermore, the EU’s stance has isolated it from the global diamond community, which sees the proposal as a move to dominate the industry’s needs.

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The decentralized approach of the KP has broad support, particularly from industry members, civil society, and stakeholders in Belgium, who remain concerned about speaking out for fear of retaliation. As KP Chair, I have consistently warned against a centralized system, which would disrupt the existing network of 59 nodes (with Uzbekistan recently joining), a framework that has been effective for over two decades. A single-node approach would undermine trust, collaboration, and the sovereignty of participating countries.

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This proposal also puts undue pressure on African nations, which would have to route their diamonds through Antwerp for verification before entering G7 markets. This not only adds logistical and financial burdens but also limits African countries’ ability to manage their own resources. The EU’s approach appears to serve its own interests, seeking to maintain influence over an industry that favors decentralized collaboration over excessive bureaucracy.

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Despite opposition from African countries like Botswana, Namibia, and Angola, and concerns raised by the African Diamond Producers Association (ADPA), the EU remains steadfast in its support of the single-node model, which echoes past colonial attitudes. In terms of practical efficiency, centralizing control in Antwerp also creates a vulnerability to corruption and inefficiency, a concern highlighted by previous scandals in the city.

The decision to select Antwerp raises questions, as the city’s reputation has been tarnished by past cases of corruption, smuggling, and unethical practices. Notably, the Monstrey Case revealed a network of 220 corrupt diamond dealers, and former Antwerp Federal Police Commissioner Agim De Bruycker was twice arrested for similar charges. This track record casts doubt on Antwerp’s suitability for overseeing the global diamond trade.

While no single location is perfect, a decentralized system based on transparency makes more sense than trusting the EU with certification. As global politics increasingly shift towards nationalism and self-determination, decentralization offers a more balanced approach. Former European Central Bank President Mario Draghi’s comments on the future of competitiveness highlight the importance of decentralization and empowering individual nations.

Over its 24-year history, the Kimberley Process has proven effective in reducing conflict diamonds and promoting ethical sourcing. Its existing framework can adapt and improve, allowing nations to self-regulate their resources. The UAE’s recent demonstration of a new technology platform for KP certification at the Dubai Plenary proves that innovation can enhance transparency without compromising sovereignty or imposing unnecessary burdens.

As KP Chair, I look forward to working with the global community to ensure that all stakeholders, especially African producers, continue to have a voice in managing and benefiting from their natural resources.

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