Diamond relief fund set up for "poor" producers

Botswana on Tuesday became the first beneficiary of a new "diamond relief fund" aimed at reducing poverty in the poorest gem producing countries. The fund was launched as the diamond industry's top traders and polishers opened a world conference on Monday in Antwerp, Belgium. "This year close to 250,000 euros [US $244,000] will be donated to Botswana on behalf of the Antwerp diamond community. The funding will go towards supporting social, medical and educational programmes in the country. This a sign of our commitment to development in those gem producing countries most in need of social aid," public relations officer of Antwerp's High Diamond Council (HDC), Mia Doody, told IRIN. Antwerp's HDC handles 80 percent of world trade in rough diamonds and half of the trade in cut gems. But some observers said the initiative was an effort by the diamond industry to improve its image following recent allegations of its complicity in the trade of "conflict diamonds" that are said to have fuelled some of Africa's bloodiest civil wars. Botswana's exports account for 30 percent of the world's rough diamonds. However, a large proportion of the country's population continue to live in poverty, even though it is classified as a medium-income developing country with a GDP per capita of US $7,184. Opening the conference, Botswana's President Festus Mogae said his country had "still to see the full benefit of years of investment in its new mines". Industry officials at the Antwerp meeting claimed they were winning the battle against smugglers who use gems to fund African conflicts, the Associated Press reported. "We are now in the post-conflict diamond era ... the diamond business has changed," said Peter Meeus, managing director of the HDC. But the international lobby group Global Witness said that despite some success, the international community was "still far from shutting down the trade in rogue gems". "There is still a roaring trade in 'conflict diamonds' and to say that we are in a post-conflict diamond era is a complete denial of the current reality," Alex Yearsley, a researcher at Global Witness, told IRIN. He added that although governments had registered the need to curb the import and sale of "conflict diamonds", he was concerned whether the diamond industry had any strategy or policy for implementing the "Kimberley Process". On 1 January 2003 about 45 countries are expected to implement the Kimberley Process, an international monitoring system that aims to prevent "blood diamonds" from entering the legitimate market, while at the same time protecting the diamond industry. "Countries have about three months to regulate their national policies in line with what was agreed to under the Kimberley Process before the January launch. It is worrying that some countries are still in self-denial about the Kimberley Process and conflict diamonds. Those who fail to comply will find themselves in a very difficult situation. If this attitude persists within the diamond trade then many of them could be out of business on 2 January 2003," Yearsley said. He added that although there had been "ongoing debate about the Kimberley Process" at the conference, it was unlikely that the Antwerp meeting would produce a detailed set of proposals on how governments would implement a credible monitoring system.