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8
Summary of Session 5
Study Circle RSA1 (Martin Jansen)
Our report for session 5 as follows:
We started off by reporting on our research efforts for our selected TNC, De Beers diamond company. The facts which we discovered were truly amazing. For
your interests we highlighted some key facts like:
- The company was taken over by Ernest Openheimer , the father of South Africa's biggest capitalist family, through blackmail and crookery. Of course the
company formed on that basis and continues in the same vein today.
- They have a long history of causing major environmental damage in the quest for mineral wealth. Examples of this are, the infamous "big hole" in
Kimberley which is proudly proclaimed as the biggest man made hole in the world. They are also causing harm to the sea environment off the coast of
Namibia, through mining diamonds in the sea.
- At an early stage of their history they set about gaining a national and international monopoly on diamonds. Today it is effectively an international diamond
cartel through various means like, dumping diamonds, buying out other producers to maintain its monopoly.
- Attempts at prosecuting them with anti-trust laws in the USA through the Sherman Act, failed to curb De Beers cartel and its monopoly.
- De Beers heavily influenced public opinion on diamonds to extend its market. It even used Hollywood extensively and bribed directors with diamonds to
get film stars to wear diamonds and talk favourably about in movies. Remember "diamonds are a girls best friend" and "Diamonds are forever" ?
- General Electric started producing diamonds artificially and threatened prices and De Beer's market. De Beer's managed to pursuade them to stop and
even got the director of GE who managed the project fired.
- Diamonds were discovered in the former USSR in 1957 during the height of the "Cold War". Despite this De Beers manged to strike deals with the
USSR and during the 1970's Nicky Oppenheimer , a South African, even managed to visit Moscow regularly to do business.
- De Beers started and marketed the cluster diamond jewellery to profit out of the previously useless small diamonds. This diamond jewellery is produced
in India's sweat shops using mainly child labour. These children suffer from stunted growth and deformities.
- De Beers is controlled by the Oppenheimer family. Anglo-American Corporation is controlled by De Beers and much of the South African economy is
owned and controlled by Anglo American.
- De Beers has had mining interests in other African countries for decades. This included regimes like that of dictator Mobuto Sese Seko of the former
Zaire. They left during the civil war fearing the anti-monopoly rhetoric of the rebels under Laurent Kabila. Recently they re-opened their offices there and
dealing with the new government.
- Harry Oppenheimer bought and is the sole owner of the files of the Rivonia Trial of Mandela and others. This trial led to them being imprisoned for over
twenty years each for opposing Apartheid.
Assessing the information:
- Lot of information about the history of the company, but it is more difficult to obtain current information.
- The views and voices of workers are very rarely recorded.
- De Beers have strong ties and influence over governments, irrespective of their politics.
- De Beers destroyed small business.
- De Beers has absolute control over the market, thus making nonsense of the notion of the capitalist "free market". The market is not free, it is controlled.
- When investing in diamond mining, especially those which are alluvial (above ground), it does not simply invest in exploration and a return on investment,
but rather control over the available diamonds in the world.
- Clear collusion between De Beers, Apartheid and the former USSR.
- Diamonds are a created illusion with very little use value for ordinary people in everyday life, other than appeasing their vanity. De Beers manipulates
public opinion and fashion.
- De Beers makes use of child labour (over 100000 in India).
Sources of Information:
- TULEC
- Financial Magazines
- Newspapers
- Video and book "The Diamond Empire"
Information still required:
- 1) How much do they spend on social development in S.A.
- 2) Are the Oppenheimers not accountable to anyone ?
- 3) Were they involved in any coups in Africa eg. Zaire/Congo ?
Tasks (in addition to that in the course) :
Each participant to think of a question which they would like to know about De beers. We will discuss these next week and E.Mail to De Beers.
For more information on De Beers why not surf the web .
Address: http://mbendi.co.za/codb.htm
Points noted about the case-study, "Hotel workers organise across borders"
1. Working conditions are even worse in neighbouring countries, ie. labour flexibility without compensation and victimisation of workers.
2. Real problems in achieving solidarity, like:
- Communicating between workers and organisations + language.
- Various conditions of employment making common demands more difficult and similarly building solidarity.
- Different levels and traditions of organisation and confidence/consciousness of workers.
- Lack of resources
- Xenophobic sentiments undermine solidarity.
We did not complete the session as per the course as participants were tired.
Ciao for now!
Martin Jansen
Links Conserning this summary
Study Circles other summaries
[Session 1]/ [Session 2]/ [Session 3]/ [Session 4]
[Session 5]/ [Session 6]/ [Session 7]/ [Session 8]
[Evaluation]
Summaries of session 5
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