UPSC Syllabus: Gs Paper 2- International Relation
Introduction
India’s assumption of the Kimberley Process chairmanship in 2026 offers a rare opportunity to reform a key global mechanism governing the trade in conflict diamonds. With its central role in the global diamond value chain, India is well placed to address long-standing gaps in definition, enforcement, and transparency within the Process. At the same time, India’s diplomatic engagement with Malaysia reflects a broader effort to support its reform agenda through stable regional and multilateral partnerships.
What is the Kimberley Process?
- Origin and purpose: The KP began in May 2000 when southern African countries started talks to stop the trade of conflict diamonds used by rebel groups to threaten governments.
- Kimberley Process Certification Scheme (KPCS): In 2003, negotiations with 37 signatories created the KPCS to certify rough diamonds and block conflict-linked trade.
- Membership and global coverage: The KP now has 60 participants representing 86 countries and covers about 8% of global rough diamond production.
- Operational rules: Rough diamonds can be traded only between KP-compliant members, with each shipment carrying a verified KP certificate.
- Data-sharing requirement: Members must share timely and accurate data on diamond production and trade to maintain transparency.
India and the Kimberley Process
- India’s chairmanship in 2026: India’s leadership role gives it influence to guide reforms in global diamond governance.
- India’s position in the diamond value chain: India is not a producer but imports around 40% of global rough diamonds by quantity and value.
- Cutting and polishing hub: Surat and Mumbai are global centres for diamond cutting and polishing, making India central to value addition.
- Major export destinations: India re-exports polished diamonds to China, Hong Kong, Israel, the United Arab Emirates, and the United States.
- Strategic leverage: India’s central role in processing gives it strong influence within the KP despite limited domestic production.
Key Challenges within the Kimberley Process
- Narrow definition of conflict diamonds: The KP definition focuses only on rebel funding and ignores state violence, human rights abuses, and environmental harm.
- Blind spots in governance: Issues like human trafficking, artisanal mining abuses, and illicit trade channels fall outside the current scope.
- Consensus-based decision-making: Any decision can be blocked by political veto, making it hard to formally identify conflict diamonds.
- Weak enforcement outcomes: The KP lacks clarity on action after identifying conflict diamonds, reducing deterrence.
- Impact of embargoes: The Central African Republic case shows that bans without support increase smuggling and violence.
- Community protection gap: There is no agreement on whether the KP should address state-linked violence affecting mining communities.
India’s Reform Agenda within the Kimberley Process
- Broadening the agenda carefully: India can form a technical working group on violence and human rights risks beyond rebel insurgencies.
- Consensus-building approach: Recommendations from this group can prepare ground for reform without reopening political conflicts.
- Digital certification systems: India can promote tamper-proof digital KP certificates and harmonised customs data exchange.
- Blockchain-based traceability: Unique, time-stamped digital records for shipments can reduce fraud and improve transparency.
- Support for producer countries: Regional KP technical hubs in central and eastern Africa can provide training and certification support.
- Institutional transparency: India can push for third-party audits and full public release of detailed KP statistics.
- Strengthening civil society role: Open communication channels can preserve the tripartite balance of governments, industry, and civil society.
Way Forward
- Reforming the scope of conflict diamonds: India can push the Kimberley Process to gradually address violence and human rights risks beyond rebel financing, without reopening political deadlocks.
- Using technology to strengthen certification: Digital, tamper-proof KP certificates and harmonised customs data exchange can reduce fraud and improve transparency across the diamond supply chain.
- Modernising traceability systems: Blockchain-based, time-stamped shipment records can create immutable audit trails and strengthen trust in KP compliance.
- Supporting producer countries through capacity-building: Regional KP technical hubs in central and eastern Africa can provide training, IT support, certification help, and forensic capacity.
- Improving transparency and accountability: Independent audits and full public release of detailed KP statistics can improve confidence in the system.
- Keeping the tripartite balance intact: Strong civil society participation should remain central to ensure credibility and oversight.
- Linking diamond trade with community development: KP reforms should recognise diamonds as a livelihood source and align revenues with health, education, and local infrastructure needs.
- Diplomatic support for reform leadership: Stable regional ties, including improved engagement with Malaysia, can help India sustain its leadership role in global diamond governance.
Conclusion
India’s chairmanship of the Kimberley Process provides a timely chance to strengthen a system that has struggled to keep pace with evolving forms of violence and illicit trade. By promoting technological solutions, capacity-building, and inclusive governance, India can help restore the Process’s credibility and effectiveness. Supported by steady regional diplomacy, including improved ties with Malaysia, this approach positions India as a constructive reform leader in global economic governance.
Question for practice:
Discuss how India’s chairmanship of the Kimberley Process in 2026 provides an opportunity to reform global diamond governance while addressing its structural limitations and advancing responsible trade practices.=
Source: The Hindu
