Title: A Review of the Political and Economic Forces Shaping Today's Diamond Industry
Abstract: During the past 15 years, political and economic forces have converged to radically transform the structure of the diamond industry worldwide.This article examines how upheavals in the former Soviet Union and several African nations-as well as the arrival of new sources such as Australia and Canada-led to the restructuring of the rough diamond market.This in turn created new competitive pressure at the wholesale and retail levels, including the movement to establish new diamond cuts and diamonds as branded items.At the same time, technological advances have enabled the faster, more efficient manufacturing of rough diamonds, created new treatments, and fostered the introduction of economically viable gem-quality synthetics.While demand for diamond jewelry remains strong in the U.S., which accounts for nearly 50% of world consumption, new markets such as India and China are likely to spearhead continued growth.In addition, new social and governmental initiatives have affected how the entire industry conducts business.a Totals may not match individual values because of rounding.A "-" in a block indicates no production or negligible production reported.Sources: Balazik (1995); Olson (1999Olson ( , 2003)).Note that other sources may use different numbers because much of the information is based on estimates.b Total production.Separate figures for industrial diamonds not available.c All Russia/USSR data before 2003 are based on estimates, with output believed to be 50% gem and 50% industrial.