Global Perspective of Land and Life Africa Blood Diamonds Essay

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1.Write a one page paper on Africa's "dirty diamonds" also known as blood diamonds. Your paper should explain what they are and what troubles they have brought to this region. It should also explain what has/is being done to deal with the problem including the Kimberley Process. Include references. Page 423 will help.

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09:41 7 完成 s Fundamentals of World Region... 9.4 Economic Geography 423 Problem Landscape Cleaning up the Dirty Diamonds "Diamonds are a girl's best friend," sang Marilyn Monroe. Diamonds Are Forever proclaimed the title of a James Bond Film. Another film did not have such an endearing name: Blood Diamond. This film tells part of a sordid story about diamonds: as recently as 2004, as much as 15 percent of the world's annual production of rough diamonds was made up of dirty diamonds (also called "conflict diamonds" and "blood diamonds"), defined by the United Nations as "rough diamonds used by rebel movements or their allies to finance conflict aimed at undermining legitimate governments." Gems of such questionable origin financed at least three African wars. But diplomatic, nongovernmental, and business efforts have largely stemmed the tide of Africa's dirty diamonds. In 2002, following four years of negotiations, 45 countries endorsed a UN-backed certification plan, called the Kimberley Process, designed to ensure that only legally mined rough dia- monds, untainted by violence, reach the market. Rough diamonds must be sent in tamper-proof containers with a certificate guaranteeing their origin and contents. The importing countries (the biggest of which are China and India) must certify that the shipments have arrived unopened, and reject any shipments that do not meet the requirements. Only countries that subscribe to the Kimberley Process are allowed to trade in rough diamonds. Corporate interests and consumer ethics have cleaned up the diamond trade. Diamond certification has been spearheaded by the world's leading diamond company (with about two-thirds of the market), the South African- based multinational De Beers. De Beers was embarrassed by a report that it had bought $14 million worth of diamonds from Angolan rebels in a single year. Perceiving that a public re- lations debacle could lead to a business disaster, as happened with an organized boycott against fur products in the 1980s, De Beers seized the initiative. In the name of Africa's welfare, but certainly also as a means of increasing demand and profit, De Beers introduced branded dia- monds, certified as coming from nonconflict areas. Other diamond companies followed suit, especially in an effort to please Americans, who buy 40 percent of the world's diamonds. Diamonds are not the only potentially "dirty" African mining products; "conflict metals" or "conflict minerals" are discussed on page 439. And outside the mining sector, there have been efforts to certify a legal trade in stockpiled and confiscated ivory, but as we have seen, these have so far proved unsuccessful. Surging commodity prices of natural resources do not es- and a high incidence of civil war.19 These deter investment and tablish a sustainable foundation for development. In fact, de- the kind of economic diversification that ideally should include pendence on primary commodity exports is associated with manufacturing and services. three problems that sustain underdevelopment: economic The tide of globalization that swept the world between about shocks related to volatile commodity prices, poor governance, 1980 and 2000 changed the structure of developing country exports profoundly. In 1980, 75 percent of LDC exports were primary commodities, but by 2000, 80 percent were manu- factured goods. LDCs generally broke loose of their dependence on primary commodities—but not the African countries. Sub-61 Saharan Africa has been the last world region to be part of this transformation, and we need to see whether African countries can succeed in joining the global market for manufactures or se- cure a footing with profitable service sectors. Economist Paul Collier did a statistical analysis of the rela- tionship between primary com- modity dependence and the risk of civil war. He found that in any given five-year period, countries not dependent upon primary . Figure 9.19 The Kiambethu tea farm is just 20 miles from Nairobi in Kenya's beautiful highland country. Kenya's economy is highly dependent on exports of tea and coffee. Over-reliance on cash crops and other commodity exports had only a 1 raw materials makes many Sub-Saharan African countries vulnerable to price swings in the global economy. percent risk of civil war, whereas ette care opyright 2017 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). ial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. CHAPTER 9 Sub-Saharan Africa Insights The Resource Curse countries in Africa have been described as ring from the resource curse, also known e "paradox of plenty." This is a paradox at a country with a great abundance of a ble natural resource often experiences reconomic growth than countries without an endowment. Nigeria provides a good Oil-fueled growth does not always create abun- dant jobs, although oil can account for as much as 80 percent of a country's revenues, it often employs fewer than 10 percent of the workforce. Against this backdrop of economic inequality, the revenue earned from oil crowds out other sectors, such as agriculture, manufacturing, and militaries, and are more likely to get involved in conflicts, both external and civil. Is there light at the end of Africa's resource curse tunnel? Recent developments in some countries suggest there is. When commodity prices fall, the typical pattern is that the overall economy falls with them; for example, during
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BLOODY DIAMONDS
Bloody Diamonds
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BLOODY DIA...


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