Can International Initiatives Promote Peace? Diamond Certification and Armed Conflicts in Africa

The Kimberley Process Certification Scheme (KPCS) aims to prevent so-called conflict diamonds – diamonds that originate from conflict zones – from entering the world market. This paper examines its impact on armed conflict in Africa by exploiting grid-cell level variation in the suitability to extract alluvial (secondary) diamonds and comparing grid cells with and without this suitability before and after the introduction of the KPCS in 2002. We find that the KPCS led to a permanent and significant reduction in armed conflict without triggering increases in other forms of violence. We also provide evidence for geographic spillovers: conflict also declined in neighboring regions. Rebel group level evidence further shows that after the introduction of the KPCS, rebel groups were less likely to engage in armed conflict and their operations became more geographically concentrated. Overall, the findings suggest that the KPCS effectively limited rebels’ ability to finance violent activities.