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Unita Diamonds: the Political Economy of Diamonds

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Unita Diamonds: the Political Economy of Diamonds UNITA DIAMONDS: THE POLITICAL ECONOMY OF DIAMONDS AND VIOLENCE IN SOUTHERN AFRICA Lee J.M. Seymour M.A. Candidate Department of Political Science Dalhousie University Subrnitred in partial fulfilment for the requirements of the degree of Master of Arts, Political Science at Dalhousie University, I September 2000. O Copyright by Lee J.M. Seymour, 2W. National Library Bibliothèque nationale 1*1 of Canada du Canada Acquisitions and Acquisitions et Bibliographie Services services bibliographiques 395 Wellington Street 395. rue Wellington Ottawa ON KlA ON4 Ottawa ON K1A ON4 Canada Canada The author has granted a non- L'auteur a accordé une licence non exclusive licence allowing the exclusive permettant à la National Lïbrary of Canada to Bibliothèque nationale du Canada de reproduce, loan, distriaute or sell reproduire, prêter, distribuer ou copies of this thesis in microfom, vendre des copies de cette thèse sous paper or electronic formats. la forme de microfiche/film, de reproduction sur papier ou sur format électronique. The author retains ownership of the L'auteur conserve la propriété du copyright in this thesis. Neither the droit d'auteur qui protège cette thèse. thesis nor substantial extracts fkom it Ni la îhèse ni des extraits substantiels may be printed or otherwise de celle-ci ne doivent être imprimés reproduced without the author' s ou autrement reproduits sans son permission. autorisation. ABSTRACT This study analyses the origins and impact of, and prospects for, efforts to sever the connections between UNITA diamonds and conflict in Angola. An analyticai approach focused on UNïTA's past and present roles in Angola's political economy of violence reveals unintended consequences and unforeseen dangers in the present sanctions-based approach to peacemaking in ~n~olî.The Fowler process and conflict diamond initiatives represent pragmatic forms of peacemaking governance that have prompted long overdue shifts in global secunty and diplomatic practices, processes and architectures. Empowered sanctions regirnes and efforts to curb the international trade in conflict diamonds are beginning to degrade UNITA'S conventional mi1itary capacity. However, this does necessarily increase the prospects for peace in Angola or the broader region due to a recumng disconnect in the rnyopic sanctions approach, namely, the failure to reconciIe efforts to reduce WA'sability to pursue the military option with the more fundamental objective of encouraging a sustainable peace. The sanctions approach alone will prove ineffective at best, and counterproductive at worst. Tt is therefore imperative that sanctions against UNITA be ernbedded within a comprehensive set of interventions focused not on UNITA diamonds, but on Angola's pervasive political economy of violence as the central impedirnent to human security/development. LIST OF ACRONYMS ASC Angola Sanctions Committee COIPEA Comite Inter-Eclisial para paz ern Angola / Inter-EcclesiasticaI Committee for Peace in Angola DRC Democratic Republic of Congo ECOWAS Economic Cornrnunity of West Afncan States EO Executive Outcornes FAA Forças Amadas Angolanas / Angolan Anned Forces FLEC Frente Libertacâo do Enclave de Cabinda / Front for the Liberation of the Cabindan Enclave Frente Nacional de LibertaçZu de Angola / National Front for the Liberation of Angola GURN Govemment of National Unity and Reconciliation HRD Hoge Raad voor Diamant / Diamond High Council IDMA International Diamond Manufacturing Association MF International Monetary Fund MONUA United Nations Observer Mission in Angola MPLA Movimento Popular de Libertaçiïo de Angola / People's Movement for the Liberation of Angola NGO Non-governmentai organisation OAU Organisation of African Unity OCHA Offrce for the Co-ordination of Humanitarian Affairs PRS Partido da Renovacao Social / Party of Social Renovation RENAMO Resistencia Nacional Mocambicana / Mozambique National Resis tance United Kingdom of Great Britain and Northem Lreland Unicza Nacional Para a Independencia Total de Angola / National Union for the Total Independence of Angola United Nations United Nations Angola Verification Mission The United States of Amenca United States Agency for International Development Countless intellectual influences and personal experiences converge on the following pages. I gratefully thank the friends, colleagues and mentors who have shaped this study: Tim Shaw for supervising the thesis project and sharing the breadth and depth of his knowiedge; David Black, as much for his encouragement as his perceptive critiques; Sandra MacLean for gleaning constructive criticism from poorly-edited drafts; Frank Harvey for critical theories on critical theory; participants of the 'IPSA RC#40 Workshop' at Dalhousie University, August, 2000, and the 'Measured Steps: Implementing the Ottawa Convention' colloquium at Meech Lake, April, 2000; Dalhousie graduate students of the Political Science, Econornics and International Development Studies departrnents for lively debates; Andrew Grant and Zoë Wilson for their editing and shared interests; John Harker for his comments; Jean Daudelin of the North-South Instinite for providing me with an outstanding venue to continue my research after Dalhousie; and Mark Zacher and Brian Job for a push in the right direction. It would be remiss of me not to acknowledge the financial support of the Canadian Department of National Defence's Security and Defence Forum, Dalhousie University, the Doris Boyle fund, the Mines Action Research Programme, and the past generosity of the University of British Columbia. This study would not have been possible without the generous support of these sponsors. Finally, my deepest appreciation goes out to my farnily for their unfailing support (and the 'enhanced structural adjustment facilities' they have provided over the years!). And, but of course, Shauna Labrnan for suffering my love. Lee J.M. Seymour, Halifax, August 2000 vii The diarnond, a symbol of purity, makes a market that functions both above and below ground, in which the licit and illicit rningIe freeiy and comfortably, the line between them almost imperceptible, usuaily irrelevant. Diamonds bring out the worst in men - and women.' - David Koskoff, The Diamond World No study on Angola cm begin without reference to the contrast between the country's economic prospects and the destitution in which the vast majority of the population struggles to survive. War is central to the disparities between the potentiai and the actual in Angolan political economy. Paradoxicaily, the war that condernns Angolans to a Iife of poverty and insecurity is fuelied by the country's rich resource wealth. Oil and diamonds, in particular, have fùnctioned as modes of rentier accumulation to fund the violence perpetrated by the principal waning factions over the past twenty-five years: the governing MPLA and UNITA.' Violent struggles over resource access and control have become central to Angola's conflict and the threats it presents to human security/development.' ' D Koskoff quoted in 1 Smillie. R Hazelton and L Gberie. The heart of rhe marrer: Sierra Leone, diamonds and human securizy, Ottawa: Partnership Afnca Canada, 2000, p iv. ' Following defections in 1998. there are currently three UNITA factions: WTA-Renovada a governrnent-sanctioned parliamentary group headed by Eugenio Manuvakola. a UNITA bloc led by Abel Chivukuvuku and Jaka Jamba that distances itself fiorn both the government and Jonas Savimbi. and finally Savimbi's militarist wing. Unless otherwise noted, 'UNITA' refers to the hard-line faction headed by Savimbi. ' Given the multiple Iinkages between human security and human development. I group the two concepts into 'human security/deveiopment'+ This should not, however, be understood to imply thac the terrns are synonymous. It is not my intention ro delve into the important debaces concerning the merits of human security and human development perspectives, in both theory and practice. See chapter one for a note on the close conceptual relation between the political economy of violence and hurnan security/deveIopment perspectives (United Nations Development Programme, Human development report l994/lW9, New York: Oxford University Press). -7 An awareness of powerful economic agendas in Angola's conflict implies that interventions to promote peace - diplornatic, economic, military, humanitarian, corporate or otherwise - rnust take account of the extant political economy of violence in Angola and the broader regione4Indeed, retrospectives on the failures of previous Angolan peace efforts stress a disregard of the economic motivations of parties to the conflict in the planning and execution of peace initiatives. Thus, in a recent report, Human Rights Watch argued that 'It was a critical mistake in the Lusaka peace process not to have irnposed an embargo on UNITA'S diamond sales much earlier' .5 The international comrnunity's spectacular failures in Angola have resulted in a steep learning curve. Current efforts to foster peace are therefore predicated upon a particular reading of the conflict's political economy, with specific focus on the illicit diamond trade estimated to have generated $3.72 billion in revenues for UNITA berween 1992-1998.~In an attempt to pressure this diamond-based war economy, the Secunty Council's Angola Sanctions Cornmittee has targeted UNITA with progressive sets of sanctions, most recently prohibiting the trade in iliicit diamonds iri July 1998. Related initiatives on 'conflict diarnonds' also target UNITA diamonds as part
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