Kimberley as a means of promoting good governance: The role of business

Abstract

The Kimberley Process stands for involving business in the promotion of human rights if only in singular circumstances. Financing civil wars with stolen diamonds seems strange. But it did happen in Angola and Sierra Leone a while ago. At that time the world diamond business was still being controlled by just one producer plus trader. In retrospect not so surprisingly, De Beers allowed itself being talked into providing active support to the two governments fighting the respective rebellious groups and to a number of other governments appalled at reports of atrocities occurring on both sides but proving reluctant to commit their own soldiers. As a result business, i.e. De Beers, along with governments, mainly of consumer States, started operating a worldwide certification scheme effectively distinguishing between stolen blood diamonds and their legally marketed clones. The bottom line was that the rebels' financial resources were gradually being dried out while De Beers managed to secure its near monopoly for another decade or so. On other occasions, it may not be that simple to identify equally effective incentives when business is being asked not only to abide by solemn rules of corporate responsibility but to actively promote human rights and good governance. But given the mixed prospects of judicial enforcement, Kimberley should be kept in mind.