Boaz Hirsh

ISRAEL LEADS THE KIMBERLEY PROCESS

A Hayahalom exclusive

 

Hayahalom spoke with director of the Ministry of Industry, Trade and Labor’s Foreign Trade Administration, Boaz Hirsch – the first Israeli to serve as head of such a broad-scope and complex international process initiated by the United Nations – a great honor and a great responsibility. “The more I study the Process, the better I understand the size of the challenge, and the more I embrace it,” he says. Hirsch has set three clearly defined goals for his term.

 

We met Boaz Hirsch in late February, upon his return from a series of meetings in Brussels –
“Such a complex process as Kimberley, which requires decisions based on consensus despite the wide diversity of the participants, makes it essential, in my view, to hold regular meetings throughout the entire year. We cannot suffice with semi-annual meetings, one in June and the other in November. Therefore, as soon as I took office as head of the Process in January 2010, I met with the supervisor of the Kimberley Process in India. Next I met with the staff of the US State Department, as well as the individuals in charge of the Kimberley Process in the US and in Canada, respectively. During the present round of meetings, which was held in Brussels, diamond controller, Shmuel Mordechai, and I met with the chairman of the EU Monitoring Committee – St?phane Chardon, secretary general of the World Customs Organization, chairman of the Diamond Experts Committee of the WDC – Mark Van Bockstael, director general of the Belgian Ministry of Foreign Affairs, a representative of De Beers and a representative of Global Witness – the NGO that deals with the issue of conflict diamonds. In addition, I meet with relevant figures who come to Israel and hold monthly phone conversations with the committee chairpersons.”

 

What opinion have you come to so far regarding the Kimberley Process?

 

“I have been generally familiar with the Kimberley Process (KP) since the associated activity began in Israel, when Udi Sheintal was diamond controller. As for a deeper acquaintance, I am still learning. The more I understand about the Process, the greater the challenge seems, and greater my devotion to it. As someone from the outside, I realize the complex nature of the Process, which involves both commercial issues and human rights. The relationship between them with regard to preventing trade in conflict diamonds is crystal clear. Trade in diamonds can put the economies of African states on their feet and have a positive effect on quality of life and welfare, but we must ensure that no aspect of the trade causes suffering to people in countries plagued by conflict.

 

In my view, the KP is a very professional and powerful system. The work of the Process is a challenge of the highest level, as it includes representatives from 75 countries that vary tremendously as well as representatives of the diamond industry and NGOs.”

 

Some diamantaires still don’t understand what all the fuss is about, why we need the Kimberley Process. Some believe that it only serves public relations and image –

 

“One of the dangers is that people don’t remember the great explosion that created the KP. As time passes our memory, especially of history, fades. The purpose of the Process is to maintain and reinforce the process so that it doesn’t reach a breaking point. There are many problems. Obviously, we can’t expect immediate and speedy solutions in such a complex area, which can offer large profits, especially in poor countries, some of them still in the process of instituting their systems. There is no magic potion for setting up Western systems overnight. We need to constantly ask how to make the KP more complete and more whole, while also ensuring that compliance doesn’t involve measures that are too lengthy and burdensome, and that the Process doesn’t spill over to matters that are unrelated to its core purpose.”

 

What, in your view, is the mandate?

“The founders of the KP defined a clear mandate, and it is not easy to stray from it. The main purpose at the moment is to prevent the use of diamonds for armed combat and violence. This involves a struggle with complicated issues and we need to ensure that the system carries out the mandate effectively.”

 

What happens when a legitimate government carries out violence?

“This question is on our agenda. Take Zimbabwe for example. It is important to note that despite all the obstacles and difficulties, we reached several points of agreement at our last Plenary session in Namibia regarding the plan for joint action and appointment of a KP monitor meant, among other things, to ensure that all shipments from the Marange diamond fields carry his signature. This is an achievement, as the state needs to ensure that all diamond exports are signed by an external independent individual. The appointed monitor, Abbey Chikane, who was the first chairman of the KP, will be able to observe the application of the new procedures. In addition, a multi-annual joint work plan will be prepared for implementation by the KP together with the government. Furthermore, the chairman of the EU Monitoring Committee, St?phane Chardon, is now setting up another committee to evaluate what has changed in Zimbabwe since the last committee review in July 2009.”

 

How will the presence of a mild-mannered – albeit vastly experienced man – such as Abbey Chikane, or anyone else for that matter, help in places where acts of murder, rape and torture are being perpetrated?

“Every process must be examined in light of the means available to it. Remember that the large majority of individuals involved in the KP do so on a voluntary basis. We don’t have a funded task force. One can always claim that much more could have been done, but we now have a highly acclaimed KP monitor, Abbey Chikane, in Zimbabwe, with an agreed plan and a review system. Things could be much worse. I believe that implementation of the enforcement plan that we develop with the World Customs Organization (WCO) will enable further improvement. We are now setting up a joint work team to develop ideas for a multi-annual work plan to be submitted this year for approval by the customs organizations and the KP. The training of border customs officials, for example, may prevent the smuggling of illegal rough to neighboring countries. We must remember that in such a complex process that requires decisions by consensus, we have to be realistic. We mustn’t rush towards too many aims and goals, and need to set ourselves achievable objectives.”

 

What are the goals you have set for your yearlong term as chairman of the Process?

“The enforcement efforts with the WCO described above, implementation of Israel’s initiative to establish a committee to help solve trade problems that arise occasionally when boxes of rough get stuck in customs because of technical problems and creation of a large body of knowledge associated with the Kimberley Process and not to specific countries.

The issue of enforcement and setting up a body of knowledge are two subjects that we will begin implementing during my term in office, but they will continue under later chairpersons, as a long time is needed.”

 

What is your reaction to Zimbabwe’s declaration that it doesn’t need the KP in order to market its rough diamonds?

“It is easy to get carried away by declarations. It’s what is actually happening that’s important. Despite the statements – which we followed closely with some concern they might leave the KP – the Zimbabwe government chose to accept Chikane’s appointment and continue honoring their commitments.”

 

What is happening at the moment with regard to the Ivory Coast?

“UN resolutions of 2005 and 2009 prohibit the direct and indirect import of rough from the Ivory Coast. At the KP conference held in Moscow in 2005, the participants were asked to take measures to prevent the trade of illegal diamonds from the Ivory Coast and diamonds produced in that country. At the meeting held in November 2009 in Namibia, we decided to share the information on the Ivory Coast with the United Nations. Furthermore, in order to help prevent the trade of Ivory Coast diamonds, in December 2009 we set up a scientific subcommittee, operating under the Kimberley Process Diamond Expert Committee, to characterize and identify rough diamonds. In addition, several countries and companies in the KP have organized informally under the title Friends of the Ivory Coast, to supply the local government with technical aid and training in order to support their efforts to meet the minimum requirements of the Process.”

 

Venezuela suspended itself from the Kimberley Process in order to get organized and be readmitted to the Process

 

“In November the two-year suspension that Venezuela imposed on itself will expire. We are now examining how to proceed regarding Venezuela and therefore I prefer not to discuss this issue at the present time.”

 

Is it preferable to suspend a country from the Process or to let it remain at a heavy price?

“It is best for the country to be in the Process and comply with its minimum requirements. If a country is a member in the Process and we see that it isn’t taking constructive measures, there is no point deluding ourselves and keeping it in the Process.”

 

 

How unusual is the Kimberley Process in the world of complex international processes?

“The requirement of consensus is not unique to the Kimberley Process. I have been participating for several years in another organization where every decision must be made unanimously by all participants – the World Trade Organization (WTO). Although it does not include NGOs or industry, it does have 150 participants and they all have to agree on every decision. Consequently, for instance, the current round of WTO talks (known as the Doha Round) has been going on for over eight years.

However, because the KP involves human rights, the delays are much more critical than in purely commercial talks, their importance for the world economy notwithstanding.

 

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Boaz Hirsch
Boaz Hirsch (45), married and father of 3, holds a bachelor’s degree in law and economics and a master’s degree in law. He served as commercial advisor to the Ministry of Industry, Trade and Labor in Brussels, where he dealt with the EU agencies, and as a lecturer in international trade at the Faculty of Law at Hebrew University.

Prior to that, he was in charge of bilateral trade agreements in Israel’s Foreign Trade Administration. In that position, he led Israel’s entry into the world’s largest commercial space project – Galileo. He also managed the negotiations on the issue of export from the occupied territories and initiated and managed negotiations on a free trade agreement with Mercosur countries (Brazil, Argentina, Uruguay, Paraguay). For two years he served as deputy director general of Israel’s Ministry of Industry, Trade and Labor.

As deputy director general for foreign trade, Boaz Hirsch is responsible for Israel’s trade agreements and for 35 trade representatives in 50 countries that are Israel’s largest export destinations. In addition, he heads the Ministry of Industry, Trade and Labor’s international activity division, which includes the Export Institute, foreign trade risk insurance, the Industrial Cooperation Authority, the Investment Promotion Center, MATIMOP – the Israeli Industry Center for R&D, and the Diamond, Gemstone and Jewellery Administration.

The Foreign Trade Administration of the Ministry of Industry, Trade and Labor is responsible for management of Israel’s international trade policy. Its main areas of activity include promotion of trade and export, initiation and updating of trade agreements to improve Israel’s conditions for trade, encouragement and attraction of foreign investment and development of strategic cooperation with foreign companies. In addition to its activity within Israel, the Administration operates a network of economic representatives, which serves as the executive branch of the ministry in foreign markets.

 

The Kimberley Process

The Kimberley Process (KP) is a joint venture of governments, industry and NGOs aimed at preventing trade in conflict diamonds – rough diamonds used by rebel movements in different countries to finance wars against legitimate governments. For years the trade in these illegal diamonds fueled vicious battles in countries such as Angola, the Ivory Coast, the Democratic Republic of the Congo and Sierra Leone. The Kimberley Process Certification Scheme imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as conflict-free. The KP has 49 members, representing 75 countries, including the EU as a single country.

 

Ivory Coast

In 2002 a revolution split the Ivory Coast: the northern region, controlled by 10 rebel leaders who tried to gain control of the natural resources, and the southern region, controlled by the government, with control over the cocoa plantations (Ivory Coast is the world’s largest cocoa producer). In 2004 the UN prohibited the Ivory Coast from dealing in arms and limited the movement of certain people and transfer of money. In 2005 it forbade the country’s trade in rough diamonds. In 2007 a peace accord was signed, but the disagreements were not resolved. According to an October 2009 UN experts’ report, both the government and the rebels were violating the embargo and purchasing arms. These purchases are evidently funded by the smuggling of cacao (by the government) and trade in rough diamonds, apparently through Burkina Faso, Mali, Guinea and Liberia. There are two diamond deposits in northern Ivory Coast – Bobi-S?gu?la and Tortiya. A panel of experts that visited the country in 2005 estimated that mining in each of these two deposits, which are controlled by the rebels, reaches 100,000 carats a year. According to the panel, production prior to the struggle was about 300,000 carats a year.

 

Venezuela

In 2003, Venezuela revoked De Beers’ mining rights in the country. Since 2005 it has not reported data on rough diamond exports, claiming that it does not export rough. However, NGOs have found that Venezuela sells licenses to produce rough and that rough diamonds are smuggled out, apparently to Guinea, Brazil and Panama. In 2006 Venezuela revoked 17 licenses to mine gold and diamonds. In 2008 it suspended itself from the Kimberley Process, with the aim of organizing the procedures for exporting rough from the country and complying with the KP’s minimum requirements. In 2009 the president of Venezuela, Hugo Chavez, was reported to have proposed the formation of an intercontinental mining corporation with 28 countries in South America and Africa. Chavez announced that Venezuela had agreed to set up a joint mining enterprise with Sierra Leone, and signed a statement of intention with Mauritania, Mali, Nigeria and Namibia. Venezuela also signed energy and military deals with Russia, including a 4-billion-dollar loan from Russia for developing its mining industry.

 

For Blacks Only

In 2008, Robert Mugabe (86), who has ruled Zimbabwe for 30 years, enacted a law that required companies to transfer control of their businesses to black citizens of Zimbabwe, and warned Western investors against trying to take the country’s natural resources (gold, platinum, diamonds and uranium). According to the new conditions, companies with assets of half a million dollars or more will have 45 days to explain to the government how they intend to transfer 51% of their assets to local blacks.

 

 

 

By: Shira Ami

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