Diamonds

Botswana is the world's largest producer of gem diamonds in value terms, as well as the world's most diamond-dependent economy. Diamonds account for about 3/4 of the country's national export revenues, 1/3 (one third) to Botswana's GDP, and about 50% of all direct revenues flowing into the national Treasury.

The recent slowdown in the global economy is expected to have a serious impact on diamond sales. The world sales of the World Trading Company are expected to have been US$4.5 billion in 2001, compared to US$5.7 billion in 2000. The sales are expected to decline further to some US$4 billion during 2002. However, Botswana's diamond production has remained steady during the year 2001, amounting to 25.945 million carats, compared to 24.635 million produced in 2000.

The development of the diamond industry has enabled Botswana to record one of the highest growth rates in the world, over a thirty-year period. The country has consequently climbed out of the ranks of the world's poorest countries and has established itself as a middle income developing country. In her pursuit of socio-economic development since independence in 1966, Botswana has simultaneously nurtured a culture of democracy, good governance, transparency, and the rule of law. There is no doubt that the reward for these core values is the peace and concord that Botswana enjoys today.

Botswana has prudently utilised the revenues from diamond trade in the earnest development of human resources, provision of clean water and good health services, improvement of transport networks and telecommunications systems, better quality education, and general up-liftment of the living standards of all citizens. Botswana's diamonds are indeed for development of the country. The country enjoys one of the best telecommunication systems in the developing world. It allocated 38% of the annual development budget to the education sector in the financial year 2001/2002.

In other parts of the world, however, diamonds are unfortunately a source of conflict. The diamonds from the conflict-ridden areas account for about only 4% of the world diamond trade. Their revenues are utilised to fuel the conflicts further, quite to the neglect of the development needs of the countries concerned.

The vast majority of diamonds (over 90%) mined in the world, however, come from clean sources that are totally unconnected with conflicts, such as Botswana, Australia, Canada, Namibia, South Africa and Russia. A 'wholesale boycott' in the purchase of diamonds and diamond-made jewellery will not address the problem of conflict diamonds reaching the markets, let alone stopping the conflicts. The boycott can only deal a heavy blow, and unfairly so, to legitimate diamond trade and curtail the economic benefits flowing to developing countries from the diamond industry.

The envisaged global certification system to identify "clean diamonds" from "dirty diamonds" will be the best hope for weeding out of the international market all " conflict diamonds".

Botswana's diamond resources have been christened Diamonds for Development by the nation due to the equitable way in which the benefits derived from them are enjoyed in the country. Since the start of diamond mining in Botswana more than 32 years ago, the country has recorded the fastest growing economy for over two decades and has been the most peaceful country south of the Sahara. In short, Botswana's diamonds are clean and are indeed for development.