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Recovering Ex-situ Gemstones in African Countries: The Economic Man Versus the Police Man

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  • Voxi Heinrich Amavilah

    (Glendale College)

Abstract

The illicit dealing in gemstones (including diamonds) is a fast growing activity in African countries which produce these minerals. Zaire and Angola are two extreme examples, but by no means exceptions. The preferred policy efforts to controlling the flow of illicit trade in gems have been legislative actions - the police man. However, the police man has invariably failed to do the intended job. As an alternative this analysis argues for an economic approach - the economic man. It suggests how good old economic concepts and principles may be used to price out of the market, and recover ex-situ gems from illicit traders with only little modification for local conditions. The conclusion is that even under a limited liberalization regime the economic man tends be more efficient and effective than the police man.

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Bibliographic Info

Paper provided by EconWPA in its series Industrial Organization with number 0307001.

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Length: 22 pages
Date of creation: 19 Jul 2003
Date of revision:
Handle: RePEc:wpa:wuwpio:0307001

Note: Type of Document - WordPerfect; prepared on IBM PC - PC; to print on HP/PostScript; pages: 22 ; figures: included. I never published this piece and now Iwould like to reduce mailing and xerox cost by posting it.
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Web page: http://128.118.178.162

Related research

Keywords: economic pricing theory of illicit gemstones Africa economic man versus police man;

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  1. Dixit, Avinash, 1979. "Quality and Quantity Competition," Review of Economic Studies, Wiley Blackwell, vol. 46(4), pages 587-99, October.
  2. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
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