The stuff of legend: diamonds and development in southern Africa

Noland, Marcus and Spector, Brooks (2006): The stuff of legend: diamonds and development in southern Africa.

Abstract

This essay establishes four propositions. First, the diamond industry has been a positive force for development in southern Africa. Second, jewelry, among the most profitable segments of the industry, is a non-essential luxury, and accordingly, consumer concerns over conflict diamonds pose a long-term threat to the industry. Third, key in conflict diamonds is violent political conflict, not diamonds per se. Fourth, the continuing challenges shared by the industry, the NGOs, and public sector are to strengthen the Kimberley Process Certification System (KPCS) to eradicate trade in conflict diamonds and to enhance the related Diamond Development Initiative to regularize artisanal production and bring the diggers into the system.

• Item Type: MPRA Paper
• Language: English
• Keywords: diamonds, resource curse, Kimberley process, South Africa, Botswana, Namibia
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q3 - Nonrenewable Resources and Conservation > Q34 - Natural Resources and Domestic and International Conflicts; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; L - Industrial Organization > L7 - Industry Studies: Primary Products and Construction > L72 - Mining, Extraction, and Refining: Other Nonrenewable Resources

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