Summary
to a "Diamonds for Development" fund to help diversify Botswana’s economy. Why "Raw Deal" Talk Persists Summary to a "Diamonds for Development" fund to
. But as the global diamond market shifts, the question of whether Botswana is getting its fair share has moved from boardroom whispers to front-page news. The Changing Power Balance and global distribution. The "aggregation" process
On paper, that is true. Debswana mines the diamonds. But here lies the rub: De Beers controls the sight. For decades, virtually all of Botswana’s rough diamonds were sold exclusively through De Beers’ London-based sales arm. Botswana got 50% of the mining profits, but De Beers captured the margin on sorting, valuing, and global distribution. Summary to a "Diamonds for Development" fund to
The "aggregation" process, where Botswana’s high-quality stones are mixed with lower-quality stones from other De Beers mines (like those in Canada or South Africa), might dilute the premium price Botswana should receive. The Burden of Diversification
only received 25% of the diamonds mined by their joint venture, , while De Beers took 75%. Missing Downstream Value
Transfer pricing—where goods are sold between entities of the same company—could be stripping the country of tax revenue.