Presidents Meeting: Need for Changes Recognized

On the second and final day of its Presidents Meeting in Amsterdam, the World Federation of Diamond Bourses (WFDB) announced its decision to upgrade its operational and administrative infrastructure and to develop new revenue streams to finance the enlarged operation. The move includes hiring a full-time chief executive who will operate out of the WFDB secretary general’s office in Antwerp, Belgium.

WFDB President Ernest Blom explained the development by saying that the organization has two choices. “The first is to cross over and expand the role of the WFDB so that it remains relevant and is able to serve the interests of the bourses and bourse members in the 21st century. The second is to stay where we are, but over time lose our relevance and our ability to influence events in our business.”

During the afternoon session, the WFDB debated issues relating to the WFDB Mark, a symbol of a bourse member’s good standing and commitment to the World Federation Code of Principles (WFCOP).

The gathering also approved the launch of the WFDB Mark Associate Member program, which gives the right to display a special WFDB Mark to diamond and jewelry members who are not exchange members but who commit to upholding the code of principles.

The second day ended with a joint session of the WFDB and of the International Diamond Manufacturing Association, which had held closed sessions throughout the day. During the course of the session, ABN AMRO Diamond and Jewellery Group Head Loet Kniphorst told the crowd that the bank believes the industry’s debt has peaked, and therefore, other sources of financing are necessary.

One solution put forward by the bank is to raise money from investors outside the industry. Therefore, ABN AMRO is supporting a derivatives market.

Eli Izhakoff, president of the World Diamond Council (WDC), gave the closing report. In it, he said that the preliminary findings of an unofficial report on diamond smuggling out of Zimbabwe are fairly positive as the local government is working to stem the trade.

He also noted that, after months of ignoring repeated questions from the Kimberley Process, Venezuela has responded after being warned that it faces exclusion from the scheme. According to Izhakoff, the country apparently intends to work out its problems.

The WFDB is currently considering the applications of four bourses, Australia, Canada, Panama and Mauritius.

The General Assembly of the WFDB will next meet in May 2008, at the World Diamond Congress in Shanghai, China.