Economics Prelims cum Mains

India to actively curb ‘conflict’ diamonds

The News

  • As a chair to the 2019 Kimberly Process Intersession meeting, India has reiterated the UNGA resolution to strengthen the Kimberley Process to put a complete halt on circulation of ‘conflict diamonds’ in the world.

Image result for kimberley process

Key Highlights

  • For the first time, India is hosting the Intersession meeting of the Kimberley Process Certification Scheme (KPCS).
  • Directorate Genegral of Foreign Trade and Gem & Jewellery Export Promotion Council (GJEPC) are responsible for organizing the event.
  • As a chair, India has committed to expand the characteristic of diamond from 4 Cs to 5 Cse Cut, Clarity, Colour, Carat and Conflict-free.
  • Diamonds will also be marketed for being ‘Peace’ diamond in addition to being Precious, Popular, Prestige and Priceless.

 

In focus: Conflict Diamonds and Kimberley Process

Conflict Diamonds

  • Conflict or “blood” diamonds are illegally traded to fund conflict in war-torn areas, particularly in central and western Africa.
  • These diamonds originate from areas controlled by forces opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments.
  • Conflict diamonds grabbed the world’s attention in 1990s as a result of brutal atrocities in civil wars in many parts of Africa particularly Sierra Leone, Angola, Cote d’Ivoire and the Democratic Republic of Congo.

Kimberley Process

  • In 2003, Kimberley Process was established primarily to prevent trade of diamonds that fund conflict.
  • The Kimberley Process Certification Scheme is a certification procedure which requires member nations to certify that all rough diamond exports are produced through legitimate supply chain including mining and sales.
  • There are 55 members in the Kimberley Process including U.S., Russia, European Union, Africa, Canada, China, Israel, Japan, Singapore, Australia, UAE, New Zealand and South Africa.
  • India is a founding member of the KPCS.

Strengthening Kimberley Process

  • Latest reforms are aimed at ensuring the benefits of the diamond trade reach these African nations by improving the supply chain of rough diamonds.
  • The UN General Assembly in March 2019 adopted a resolution for strengthening of KP to sever the link between illicit transaction of diamonds and conflict.
  • In 2018, KP Plenary adopted the decision on the use of unified diamond nomenclature and terminology.

 

System of Warranties

  • World Diamond Council in its Strategic plan for 2021-25, plans to include System of Warranties.
  • The System of Warranties is an extension of the KP certification scheme.
  • It requires all diamond suppliers and diamond jewellery manufacturers to pass on a conflict free warranty statement each time diamonds change hands.
  • Further it is aimed at creating a new level of adherence to principles on human and labour rights, anticorruption and anti-money laundering.

 

About Gem & Jewellery Export Promotion Council (GJEPC)

  • GJEPC is an autonomous organisation under the Ministry of Commerce and Industry.
  • It is an export promotion body and a pressure group of about 6000 exporters of gems and jewellery in India.
  • It is India’s nodal agency for Kimberley Process Certification Scheme.

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