The Kimberley Process Certification Scheme (KPCS), which regulates the world trade in rough diamonds, is failing, according to the 2009 edition of Partnership Africa Canada's Diamonds and Human Security Annual Review. The failure of the KP, the report says, is not caused by warlords and sanctions but by participant governments that refuse to get tough on smuggling, human rights abuse and money laundering.
This year's Review, which includes detailed investigative reports on more than a dozen diamond-producing countries, says that the cost of a collapse would be disastrous for an industry that benefits so many countries, and for the millions of people in poor countries who depend directly and indirectly on it. "A criminalized diamond economy would re-emerge," says PAC's Executive Director, Bernard Taylor, "and conflict diamonds could soon follow." The problems, he says, "can and must be fixed."