Rough diamonds

The Kimberley Process, a scheme that certifies the origin of diamonds from sources that are free of conflict, may come under scrutiny with the recent publication of statistical data on diamond production and the value of exports and imports from 2006:

Top Ten Importers and Exporters

Top Ten By Volume of Production

• The Russian Federation mined 22% of the world's diamonds, Botswana 20%, and Australia and the Democratic Republic of Congo, 17% each.
• The declared value of imports was 35.159 billion dollars, with the EC importing 39% of the goods by value, India 24%, Israel 16% and China 5%.

More interestingly, Venezuela's official diamond trade has dwindled to zero. The country is riddled with small-scale diamond mines and as recently as 1997,  exported 300,000 carats of diamonds, worth about 30 million dollars. But Caracas has not issued a single certificate to the Kimberley Process since the end of 2004. While President Hugo Chavez's government claims there are no diamonds to certify, the exports of its neighbour Guyana have risen by the same amount that Venezuela's have dropped, suggesting a flow of contraband gemstones.

Caracas' apparent non-compliance with the Kimberley Process may be contagious. The convention, which was established in 2003 to prevent rebel groups and their rivals from financing their war aims from diamond sales, is voluntary. Amnesty International maintains that until the diamond trade is subject to mandatory, impartial monitoring, there is still no effective guarantee that all conflict diamonds will be identified and removed from the market. Canadian aid group One Sky also believes that without periodic reviews of all countries, the Kimberley Process remains open to abuse.

It looks like a sensitive time for the convention. Liberia has just lifted a six-year moratorium on diamond trading and become an active member of the Kimberley Process. In 2001, the UN imposed sanctions on Liberian diamonds after it accused former President Charles Taylor of using so-called "blood diamonds" to support the civil war in Sierra Leone.It remains to be seen if Caracas's apparent disregard for the Kimberley Process will lead other countries to lapse in the same way.