The term "conflict diamond" or "blood diamond" originated with the horrific troubles in central Africa. Hundreds of thousands have died
Ilegal diamond mining finances the wars in Congo and Angola. Most of the diamond mining in the DROC takes place in the eastern part of the country, which is controlled by rebel factions, with support from Uganda and Rwanda. Millions of Congolese have been forced out of the the mining areas. The extent of human rights abuses are well documented.
In the mid 1990s, massive influxes of refugees from Rwanda and Burundi impacted Congo, with disastrous consequences on the Congolese environment: deforestation, soil erosion, and wildlife
poaching in the eastern part of the country". Although the majority of these refugees were repatriated in 1996, the effects of the damage is still an issue for the DROC today. In addition, widespread fighting between the DROC rebel forces and the government continue to cause migration and internal displacement of the Congolese people.
In
Angola, the exploitation of natural resources has replaced the aid provided to rival rebel groups by the US and USSR during the cold war. The MPLA exploits Angola's vast oil reserves, and UNITA through the mining and selling of diamonds. The
region is rampant with corruption, and law and order non-existent. Gangs of diggers and dealers smuggle large quantities of diamonds out
of the country through neighboring Congo where they are then dispersed
throughout the world. In a country where unemployment is over 40% the
actions of the hoards of prospectors is not surprising.
For the last forty years the diamond giant De Beers, through its London
based Central Selling Organization (CSO), has held a virtual monopoly on
the diamond industry by controlling the sales of some 80 percent of the
worlds diamonds on behalf of the industriesþ major producers.
However, De Beers, in recent years, has lost control of a sizeable portion
of its market share as major diamond producing countries such as Russia
and Angola have realized their bargaining position and sought better
deals from De Beers by threatening to sell outside of the CSOþs artificial
price level. This combined with the fact that UNITA smuggles more than
$200 million a year in diamonds onto the world market has the diamond
industry in a flux over the possibility of world diamond prices
plummeting as the market is flooded by excess diamonds. With the world
diamond market undergoing such a monumental transition it is unlikely
that mining companies will be willing to invest in the Angolan diamond
regions to the level that is required for the current environmental
degradation to stop and the economy of Angola to start.