China's rise in the diamond market: An international explanation for the resurgence of conflict diamonds

Abstract

This paper offers an international explanation of the civil wars, ongoing conflicts, and other forms of political strife occurring in those African countries where most of the world¿s diamonds are mined. Specifically, it argues that China¿s emergence as the second largest world market for diamonds after the United States has adversely affected the diamond industry and been responsible for the resurgence of the `blood diamond¿ phenomenon.

After reviewing China¿s investment behaviour in Africa, I conduct a historical reconstruction of contemporary scholarship on the causes of political instability, including civil war. The latter consist of three frameworks ¿ psychological (greed and grievance), lootability (geological factors) and revenue frameworks (government capacity) ¿ to explain why conflicts occur in diamond rich countries.

Following that, I show how, one should also address transnational factors such as diamond smuggling in Africa, and international factors, particularly the major shift in the world market for diamonds that China¿s increasing demand has created, thus turning the presence of diamonds in Africa into a resource curse. After careful analysis and advice provided by those who reviewed this study I would like to state that civil wars are the worst possible outcome that occurs when there are political problems in countries and before it happens, there are certain stages that states face which is an important part of this paper.