Colombian civil war drug financing (rebel funding parallel to conflict diamonds)
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Anybody have any questions on any of those economic and environmental externalities? There are other types of externalities. There are social externalities, and the example I give here is conflict diamonds. Back twenty-five years ago, a lot of the diamonds were mined in Angola or the Democratic Republic of the Congo. They're also mined in the Soviet Union, in South Africa. They were having a civil war in Angola for about forty or fifty years, and in order to pay for the civil war the rebels pressed a lot of the populace — just like they did in Colombia. The rebels in Colombia, in order to finance their war against the government, sold drugs to the United States. In Angola, they forced the people to run the diamond mines, and they would take the money from them, sell the diamonds on the open market. You weren't supposed to be able to do that, we supposedly had an embargo on conflict diamonds. But it's pretty hard to tell the difference between a conflict diamond and a non-conflict diamond. There are actually some ways, but you have to do some destructive testing on the diamond, and that's not very economical. So there's lots of problems with that.