U.N. cracks down on "conflict diamonds".

In an attempt to stem international trade in "conflict diamonds" from West Africa, on May 7, 2001 the United Nations imposed economic sanctions on Liberia, which has smuggled a steady flow of ill-gotten diamonds from rebel forces in neighboring Sierra Leone.

Liberia's diamond purchases have helped fund the efforts of Revolutionary United Front (RUF) rebels fighting in Sierra Leone's decades-long civil war, which has claimed the lives of thousands and displaced over 500,000 people. The RUF rebels control the operations of the country's $30 to $50 million diamond mining industry, and use its profits to secure mercenaries, food, fuel, arms, ammunition, and medicines.

The U.N. estimates that 30 percent of the diamonds on the world market today originated in mines controlled by rogue forces that use the proceeds to fuel armed conflict. Diamond industry sources put the share of conflict diamonds at 4 percent. While U.N. member states have been prohibited from importing illicit diamonds from Sierra Leone since July 2000, the trade has continued apace. A U.N. investigation into the trade has unearthed evidence of the involvement of several politically powerful Liberians in an illicit trade scheme that, in part, allegedly provides funds to the military operations of president Charles Taylor.

Few people in Sierra Leone have benefited from the country's rich resources. Instead, money from diamonds and timber has been used mainly to fund the ongoing conflict. The flow of government funds to the military and the influx of cash from the rebel diamond and timber trades now serve to provide economic incentives for these warring factions to perpetuate the fighting.

Liberia's forest industry has played an integral role in propagating the diamond-weapons trade. In addition to providing corrupt government officials and businessmen with revenue through the sale of illegally harvested tropical timber, the roads and vehicles used to transport felled trees have facilitated the movement of weapons and diamonds. Since the timber processing industry in Liberia is virtually nonexistent, the vast majority of logs are exported whole, further depriving locals of employment opportunities they might reap from their forests. Official Forestry Department statistics for the first six months of 2000, which do not account for the vast illegal timber harvest, reveal that logging during that time period exceeded that of the previous four years combined. Not counting illegal logging, the forestry department projects that Liberian forests may be commercially viable for only another ten years.

Halting the illegal trade will be difficult in the face of the region's fighting and corruption. For instance, Dutch national Gus Koewenhoven, the notorious "Godfather of Liberia," heads two logging companies with significant concessions in Liberia and also serves as a board member of the Liberian Forestry Development Association (FDA)--the government agency charged with protecting and monitoring Liberia's forests. Koewenhoven has used his considerable connections to carve trade routes that allow for easy collection and transfer of timber, diamonds, and arms.

International pressure is also keeping this illegal trade flowing: China and France, the primary importers of Liberian timber, used their political muscle to ensure that the economic sanctions imposed in May did not include forest products. In addition, British and Ukrainian companies have supplied arms to Sierra Leone's RUF rebels, commonly funneled through Liberian channels.

Threats of consumer boycotts and increased media attention to the connection between diamond mining and conflict has coerced the international diamond industry to implement "rough controls" to establish country-of-origin certification for diamonds. However, documenting every diamond as "conflict free" will be a difficult job at best.