Was KP+ DOA?

Much was said in the last week or so about KP+. For those in a hurry, I'll start from the end – it's probably dead. It was born dead, according to a number of insiders. And, after initial details about it were published, the undercurrent against it was so strong that its chance of becoming a live reality is now very slim.

The long Version:
The first information that came out about KP+ was during a meeting between State Department officials headed by Assistant Secretary of State for Economic, Energy and Business Affairs Jose W. Fernandez and a the leadership of the diamond industry in the U.S. During that meeting, called to discuss the official U.S. position ahead of the Plenary Meeting in November, the idea was first mentioned, nothing more.

It was already at that point, that a couple of people attending the meeting said that the idea is dead. Maybe they felt it was harmful or had no merit.

I don't know how details about it got out, but this was possibly a test balloon to see in what direction the wind is blowing. Anyone I spoke with in the industry, many gathered in Mumbai for GJEPC's Mine to Market diamond conference, had nothing but criticism for it.

Members of the Indian industry disliked it as did the Israelis, the Belgians were puzzled by it and even the NGOs are distancing themselves from it.

The Details
Here is a sample of what the KP+ proposal includes (as I understand it):

The incorporation of human rights into the system – KP participants are to ensure that diamond activities meet international laws; people and organizations involved in the industry will need to be licensed (!); Members of KP+ will be required to suspend trade with other members if two thirds of the membership decides so; KP certification will be extended to polished – this is not the wording I heard of, but KP+ members should be able to verify the origins of goods even if they are polished diamonds, which will require some sort of chain of documentation; and adding member countries to KP+ will require a unanimous decision.

This means that the system will dig deep into the type of details that has nothing to do with preventing conflict diamonds, licensing will mean that any poor old digger in the depth of poverty will automatically be prosecutable for trying to feed his family, a two third majority will allow many more decision to pass to the dismay of weaker countries, but KP+ will remain an exclusive club - guaranteed by the requirement of a unanimous vote.

Notice what is missing from this document – the diamond industry. The U.S. is discussing an idea to float among other countries that gives some sort of status to the NGOs, but the diamond industry is almost a bystander that will be directed like a puppet to act one way or go the other.

In her presentation at the conference this week, Jewelers Vigilance Committee CEO and World Diamond Council's General Council Cecilia Gardner said that the debate within the KP about its evolution is raging. What is proposed above goes far beyond what she discussed. As she pointed out, KP is by nature pro human rights, designed to prevent diamonds from financing civil wars.

Chaim Even-Zohar, during his opening remarks as moderator at the conference went even further, saying the system will create first- and second-class member countries, where those that need the most help, such as Sierra Leone, will be at a disadvantage because goods from countries like Australia and Canada will seem "cleaner."

He went a step further, criticizing the politicization of the KP by the U.S. He has a good point here – while this is an agreement between governments, if the U.S. bends KP to fit some political goal, the great achievements of KP may be lost.

Israel is about to pass the leadership of the KP to the vice chair, the Democratic Republic of Congo (DRC). The U.S. wants to be elected vice chair in November, eyeing the chairmanship in 2012, which would give her great influence over KP. But to get elected it will require a unanimous approval of all KP members. What will brining up KP+ do to its chances of getting elected?

The KP+ idea is just floating around at this stage as the State Department never officially introduced it. In that case, maybe KP+ will never see the light of day. In that case it was not DOA – Dead On Arrival, it was DAB – Dead At Birth. May its soul rest in peace.