The 33rd World Diamond Congress was held in Shanghai, China from May 12 to 15, 2008. The Congress was hosted by Shanghai Diamond Exchange and the CCJP Diamond Manufacturers Association. It was attended by all ‘who’s who’ of the diamond industry. Ernest Blom, opened the first session of the General Assembly of the World Federation of Diamond Bourses, and mentioned about the significance of the fact that they had gathered in China which symbolized the future of the diamond business, not to mention the world economy in general. %%Blom said, “If we look at the forces at play in the diamond business over the past several years, we should be struck by the degree to which there has been consolidation within the diamond pipeline. Simply stated, the bigger companies have grown even larger, and in so doing have become involved at multiple stages within the distribution chain. De Beers is an obvious example, as it now is both a producer of rough, a buyer of polished and a high-end jeweller. Furthermore, by branding its Forevermark, it also is actively involved in both the rough and polished trades.”%%He went on to add, “But De Beers is not alone. Other large companies, some of which started out as diamond cutters, are today involved both in mining and in jewellery retail, enjoying economies that were unheard of in our industry just one decade ago. The trend among the new diamond corporations is to move downstream and upstream, acquiring the bulk of rough diamond supply and dominating the channels of distribution to the retail jeweller.”

{{Unity is Strength :}} “The membership of our bourses”, Blom emphasized, “is overwhelmingly made up of smaller companies, and a great many of them are feeling themselves being pushed to the sidelines. Individually, it is very difficult for a smaller company to compete in such an environment, but collectively they enjoy great strength – from a point of view of rough supply, manufacturing capacity, range of merchandize and the ability to distribute their goods in the consumer markets.” He explained that now the job of WFDB was to represent this community of diamond traders so that they should be able to function from a position of strength. A brief overview and report of the WFDB’s activities was given by Michael H. Vaughan, Secretary-General & Executive Director. The Chairman of World Diamond Council Eli Izhakoff, Honorary Life President, also addressed the Congress and discussed the Kimberly Process. %% {{Executive Committee Election :}} The election of the Executive Committee for the WFDB was held during the Congress, electing Avi Paz as the President of the WFDB. The other office holders chosen were Michael Vaughan as Secretary General, Dieter Hahn as Treasurer General and Freddy Hager as Deputy Treasurer General. The other members of the incoming Board of Directors are Anoop Mehta, David Marcus, Jacob Banda, Julien Drijbooms, Sergey Oulin, and Lin Qiang as a co-opted members.%% {{Membership Expansion :}} Avi Paz said in his acceptance speech, “It is a great honor and privilege for me to take this post and to be the representative of the 26 bourses affiliated to the WFDB. We have some very important goals to achieve in the upcoming years, and I can assure you that I will serve you in the most devoted and successful way.”%% {{Warm Welcome to Shanghai :}} The World Diamond Congress, which is the biennial gathering of the general assemblies of both the WFDB and the International Diamond Manufacturers Association, opened the joint session with a ceremony hosted by the two organizers of the Congress, the Shanghai Diamond Exchange and the CCJP Diamond Manufacturers Association. The Guest of Honour was Tang Dengjia, Shanghai’s Vice-Mayor, who welcomed the participants and lauded the rapidly growing diamond industry in his city.

{{Russia Advocates Joint Marketing :}} The keynote speaker at the opening ceremony was Sergey Vybornov, President of the Russian mining company Alrosa. In his speech, he spoke of the need to develop a cohesive marketing policy for diamond jewellery and expressed his company’s readiness to invest in a joint industry effort.%% {{Corporate Social Responsibility :}} Other important industry issues were also addressed at the Congress. Gaetano Cavalieri expressed his opinion on the need for educating members on corporate social responsibility. He explained, “In business, competition between companies and product categories is not only natural, it is a healthy thing. But when it comes to issues like consumer confidence, ethical business standards and social responsibility, there should be no competition. That is why the WFDB, IDMA and CIBJO must stand shoulder to shoulder.” He added, “For the past several months, we have systematically been putting together a proposal for a long-term educational program organized by CIBJO in conjunction with the United Nations. The aim of this program will be to promote the principles of Social Corporate Responsibility throughout the greater jewellery industry worldwide, educating members how to create and support initiatives at the grassroots level which promote sustainable economic and social developments.”%% {{Posthumous Honor for Moshe Schnitzer :}} The Diamantaire Of The Year award was also presented at the Congress. The award will be presented every year by the WFDB Executive Committee to an individual who has made an extraordinary contribution to the international diamond industry and trade. The Executive Committee decided that the “Diamantaire of the Year 2008” award will be presented posthumously to an individual who was taken away from us nine months ago but whose legacy will continue for many years to come. The first recipient of the “Diamantaire Of The Year” award is late Moshe Schnitzer.%% {{Acceptance of Grading Rules :}} The Congress successfully brought many issues to the front and pointed that would make goals achievable. Avi Paz in his closing remarks expressed his thanks to the organizers and members. He summed the achievements of the Congress. “An achievement of the 33rd World Diamond Congress was the acceptance by the executive committees of both the WFDB and IDMA of a revised set of IDC Rules for Grading Diamonds. The new set of rules is the results of many hundreds of hours of dedicated effort by the members of the Council, includes a range of amendments and adjustments to IDC’s respected rule book. Of particular significance was the decision by IDC to broaden the range of descriptors that can be used for gem-quality diamonds that have been created in laboratory or factory, and to date have been referred to as ‘synthetic.’ According to the new IDC rules, such diamonds can be described as: ‘synthetic,’ ‘laboratory-grown,’ ‘laboratory-created,’ or ‘man-made,’ and the descriptor must always be followed by the word “diamond” or “diamonds.” Under no circumstances can the term “cultured” be used to describe gem-quality synthetic diamonds.” Triple Endorsement of IDC Rules : Another achievement of the Congress was the revised IDC rules being accepted by a joint statement issued by WFDB, IDMA and CIBJO presidents. The ability of these bodies to speak with a single voice on issues that concern our constituents is a major asset and one that we should continue to nurture. Another step towards progress was the ongoing dialogue between the WFDB and the major rough diamond producers with the presence of senior executives of the leading diamond producers, including DTC, BHP Billiton Diamonds, Rio Tinto Diamond and Alrosa.%% {{Welcome to Important New Countries:}} The WFDB General Assembly accepted three new diamond exchanges as members - the Diamond Dealers Club of Australia, the Istanbul Gold & Diamond Exchange and the Panama Diamond Exchange. In his final report as WFDB President, Blom spoke of the significance of the decision, “All three organizations are located in countries that are not yet served by a diamond exchange, and all three serve regions with excellent potential. The Australian bourse will be located in an affluent market that reaches beyond the country into the markets of New Zealand and the South Pacific. The Turkish bourse is situated in a heartland on one of the world’s most rapidly growing consumer markets that is expanding its tastes from gold into diamond-set jewellery. The Panama bourse sits at the gateway to an entire continent that is not yet served by a single, local diamond bourse, and which recently was mentioned by De Beers Managing Director, Gareth Penny as a diamond market of the future.”%% {{Potentially Strong Panama Promises Much :}} The Panama Diamond Exchange (PDE) was accepted for membership in the World Federation of Diamond Bourses (WFDB) during the 33rd World Diamond Congress. On the first day of the Congress, PDE President- Erez Akerman addressing the WFDB General Assembly, said, “Our diamond exchange was opened in Panama City in early 2006 by a group of diamond traders headquartered in the region. Right from the very outset, we envisioned the bourse as a gateway to and from Latin America, which is the vast Spanish and Portuguese speaking region that stretches from the southern tip of South America, through Central America and ending on Mexico’s northern border with the United States. We also consider the islands of the Caribbean to be within our target area.”%% {{Free Trade Centre :}} The business community in Panama has been aided by the fact that the U.S. dollar is the country’s official currency. A further advantage is the Panama Duty Free Zone established in 1948. It now has an annual turnover of goods and products totalling more than $18 billion, and is considered to be the second-largest free trade centre in the world after Hong Kong. “I would like to take this opportunity and invite you all to the Republic of Panama and to the Panama Diamond Exchange, and as we say in Spanish - BIENVENIDOS!”, said Akerman. Next Congress in Moscow in 2010 : The next Presidents Meeting will take place in Antwerp, Belgium in 2009, and the 34th World Diamond Congress will be held in Moscow, Russia in 2010.