Abstract
In this chapter, the focus is on the historical developments and processes in which the diamond industry has created its legality through control of information, adaptation to changes by moving its activity around, and by criminalisation of persons and activities which can interrupt its business. The chapter presents an analysis of the structure of a diamond organisation from diamond mines in Africa, through local dealers and processing centers, to the most important international banks and diamond exchange bourses all around the world. The central role in this structure is attributed to De Beers, which succeeded in the course of history to become a leading monopoly in the diamond industry. These developments are analysed and illustrated here by different cases connected to the legal and illicit activities of the cartel.
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Notes
- 1.
In the nineteenth century the Golconda mines were exhausted, though even today there are those who believe they can still find diamonds there. The Geological Survey of India found some kimberlite pipes in a nearby area in the late 1990s.
- 2.
See, for example, The Book of Master Lie, cited in Legrand, 1985:26.
- 3.
See the story of the Hope Diamond later in this chapter.
- 4.
The scaif was a polishing wheel, which allowed symmetrically polishing all the facets of a diamond.
- 5.
After the stone was cut, it became a 10.73 carat diamond, called ‘Eureka’.
- 6.
The Nature of Diamonds, American Museum of Natural History, http://www.amnh.org
- 7.
At the end of July 2005 a Zeppelin of DTC (Diamond Trade Center) for development of diamonds in Namibia, with the most advanced equipment on board took his way to Namibia. (RTL4, 1 August, 2005).
- 8.
- 9.
In Namaqualand means a continuous smuggling of diamonds from mines (Hart, 2003:168)
- 10.
Mining Review Africa, April 2006.
- 11.
Idex Magazine, 9 May, 2005, on: http://www.idexonline.com//portal_FullMazalUbracha.asp?id=24010.
- 12.
Best Diamonds on: http://www.bestdiamonds.co.uk/diamond_education.asp.
- 13.
Often crushing also diamonds in it.
- 14.
Diamond Industry Annual Review, 2005.
- 15.
Diamond Industry Annual Review, 2005.
- 16.
Human Rights News, 23 April, 2004, on: http://hrw.org/english/docs/2004/04/23/congo8490.htm.
- 17.
Different sources report on brutal body searches, rapes, and beatings during the Angolan government operation to expel them from Lunda Norte, a province rich with diamonds, New York Times, 29 January, 2004.
- 18.
Therefore state control over the artisan sector ‘rarely extends beyond supervision of the licensed exports (the so-called ‘comptoirs’) (Diamond Industry Annual Review, 2004).
- 19.
Statement of Vladimir Fyodorov, deputy minister of industry in Yakutia at the 5th Russian conference Jewelry Market:Trends on the World Market. Pravda on-line: http://newsfromrussia.com/main/2004/02/12/52267.html.
- 20.
The Value-Added Aspects of the Canadian Diamond Industry. A Report by the Federal-Territorial Committee on Value-Added Aspects of the Canadian Diamond Industry − Northwest Territories, September 1998.
- 21.
Such as in Capetown and Johannesburg, tender are held by TrnasHex, or in Luanda by Endiama.
- 22.
Diamond Industry Annual Review, 2004.
- 23.
Ibid.
- 24.
This certificate system became even more complex after the Kimberley Process (see Chapter 7).
- 25.
Diamond Industry Annual Review, 2004.
- 26.
ibid.
- 27.
Global Witness, 2001, “Can Controls Work? A Review of the Angolan Diamond Control System.” Briefing Document, December.
- 28.
Child Labour in the Diamond Industry, 1996–2000, International Labour Organization, on: http://www.ilo.org/public/english/dialogue/actrav/child/proj/childiam.htm.
- 29.
Ibid.
- 30.
In 2000–2001 there were 42 Indian sight-holders (Kuriyan, 2002).
- 31.
De Morgen, 12 October, 2004.
- 32.
See also Global Witness, 2000:1.
- 33.
The Economist, 15 July , 2004.
- 34.
Another example is a case of cartel-forming in the construction industry in the Netherlands.
- 35.
His father, Harry Oppenheimer, died in August 2000 at 91 years of age.
- 36.
Fortune, 19 February, 2001; see also brandchannel on: http://www.brandchannel.com/features_effect.asp?pf_id=34.
- 37.
Winspear mine in Canada’s Northwest Territories, on: http://www.diamonds.net.
- 38.
Idex Magazine, 10 April, 2006, on: http://www.idexonline.com//portal_FullMazalUbracha.asp?id=25496.
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Siegel, D. (2009). From Marco Polo to the Syndicate: The History of a Multilevel Organisation. In: The Mazzel Ritual. Springer, New York, NY. https://doi.org/10.1007/978-0-387-95960-3_2
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