Walk through the main thoroughfare
of the Thai border town of Mae Sot
and you will immediately notice the hordes of traders and merchants congregating in the many gemstone shops of the town. The street is a hive of activity with Thai, Burmese, Indian, Chinese and the occasional European and North American all searching out the best deals on the many precious stones sold in the multitude of establishments connected to the bustling trade in the town.
Almost all the gems come from nearby Burma which is most famed for its ‘pigeon blood red rubies’ which largely come from the Mogok valley and Mong Hsu areas in the north central region of the country. More recently the Nanyarseik region of Burma’s Kachin state has also become a common source of some of the finest gemstones available on the planet. According to industry estimates, Burma accounts for more than 90 per cent of the world trade in rubies by monetary value, most of which are eventually sold in Europe and the United States. It is also the top global producer of jade and jadeite, the majority of which is sold in China.1
The official trade in Burma’s gemstone industry was valued at US$297 million in the 2006-2007 fiscal year, according to reports citing customs figures.2 This figure represented an increase of near on 45 per cent over the previous years gem earnings. The figure is likely to be significantly more when the value of the black-market trade in gemstones is taken into account. The military introduced the New Gemstone Law in 1995 to combat smuggling allowing people in Burma to mine, produce, transport and sell finished gems and jewellery at home and abroad, as long as they paid tax on their earnings however in practice many stones are still smuggled out of the country.
Burmese rubies are indisputably the worlds finest, but their rich red colour hides a much more sinister side to their existence. As with most of the industry in Burma, the gemstone trade is mostly ruled by the repressive military authorities and mining companies closely linked to the regime.
Arvind Ganesan, director of the Business and Human Rights Program at Human Rights Watch said “Burma’s rubies and jade are prized for their beauty but the ugly truth is that the trade in these stones supports human rights abuses. The sale of these gems gives Burma’s military rulers quick cash to stay in power.”3
Inevitably conditions at the mines are very poor by western standards with little respect given to safety and decent working practices. Wages are as low as a dollar a day. Similarly reports refer to forced labour often with children involved, extortion and land confiscation as new areas are opened up to salvage the ever depleting stock of precious stones. Human Rights Watch reports that HIV/AIDS, drug-resistant malaria and tuberculosis are increasingly common amongst those involved in the mining industry.
The largest mining area in the country, the Mogok valley, has a huge number of mines which dot the towns and the surrounding hills, and range from simple open pits, to single deep shafts, some more than 300 meters deep, as well as open tunnels blasted out of the marble hillsides.
Many of the smaller mines are communally owned by Burmese citizens who have paid a license fee to the junta. Conditions are basic and much of the work is still done by hand with non mechanical labour intensive techniques. Pans and hoes are the staple tools with gas pumps used to keep the mine shafts free of water. Most of the mines operate in a similar way: gem bearing gravel is hauled away from the pit or shaft then emptied into a series of sluices which wash away the lighter material. A heavy residue is left, which hopefully contains the gems. It is then dried and methodically studied for the telltale shine or colour of precious stones. It is very hard work with relatively little reward as it gets harder and harder to find bigger stones as their numbers diminish.
The more productive larger mines are owned by corporations, either solely, or in joint ventures with the military. These are among the richest mines in Mogok, with names such as Yadana Kaday-Kadar, Lin Yaung Gyi, and Pyaung Gaung. These mines are easily recognised by their sophisticated and expensive equipment and have close military links; indeed senior military officers reputedly arrange “private” sales of the finest gems from these companies and keep the proceeds4.
Some individuals partake in ‘kanase’ or fee washing. This is the act of searching the gravel at the end of the sluice network for any gem stones that may have slipped through the system. Gravel is often taken to the edge of the mining area by truck and dumped out by the truckload at the feet of the waiting workers. People have experienced severe injury to limbs in this manor and reports of people slipping down steep embankments as they scramble for a better position are common.
A local eyewitness described the following “he was almost buried alive under the weight of the gravel and stone. It took many of us to get him out and when he was free it was clear that one of his ankles had been broken in the accident.”
“They know the risks of working in such a way, but the possibility of striking it lucky and finding a good stone makes people keep doing it,” he remarked.
With prices for basic commodities like rice and fuel continuing to rise, people are forced to take more and more risky work to put rice on the table for their families.
“I think people should know that it is very hard and dangerous work getting the stones from the land in Burma” said a man with relatives who work in one of the mines. “They get paid very little and life is getting harder at the moment” he continued.
“Often the whole family will work in the mine, from children as young as 8 to very old and fragile people”.5
Step in the right direction
With the brutal crackdown on September’s demonstrations in Burma western governments have decided to impose further sanctions on Burmese industry. The EU, US and Canada in late 2007 all made moves to limit the sale of Burmese gemstones. In October 2007 European Union leaders voted to outlaw any trade with selected industries in Burma, including the mining sector. The EU ban, which specifically prohibited the import of precious and semi-precious stones, went into effect in November. In December 2007, both houses of the US Congress approved legislation to tighten an existing ban on importing Burmese gems to the United States via third countries. First Lady Laura Bush has also been a strong critic of the trade in Burmese gems. Similarly in December, the Canadian government adopted new sanctions on Burma that, among other measures, block all imports of Burmese origin.
Brian Leber, an American gem dealer pushing for a boycott of Burmese blood rubies said “there is a growing awareness that it is a fascist regime.”6
“Considering what this regime has done to its own people, we’re troubled to see that a precious stone is offering such a great source of cash for them,” he said.
...Tiffany and Co. and Leber jewelers have long refused to purchase any gems of Burmese origins.
A few jewellery retailers, notably Tiffany & Co. and Leber Jewelers, have long refused to purchase gems of Burmese origin. More recently several European and US jewellery companies including Bulgari and Cartier have voluntarily pledged to boycott Burmese gems.
In October 2007 the Jewelers of America, an industry association encouraged its 11,000 members to halt purchases of these gems until democratic reforms are underway. Other industry association’s one in Canada, a second association in the US, and an international jeweller’s confederation have supported similar moves.
“The governments and companies that have stopped buying Burmese gems deserve credit for not supporting human rights abusers,” noted Arvind Ganesan, “The rest have the blood of Burmese on their hands.7”
But what about help from regional powers?
The recent protest in September and October last year have lead to action in part, largely from western governments in the form of sanctions, perhaps only really wanting to appear concerned. Is it enough and will the inaction from the groups that really matter, namely Association of South East Asian Nations (ASEAN) countries, just lead to a readjustment of who operates the industry?
Burmese officials have openly stated in the past that they increasingly rely on gem auctions to bring in hard currency8. Regular auctions used to be held annually, but since 1992 they have taken place twice yearly. Beginning in 2004, additional “special” auctions were called to help fill the pockets of the military.
The vast majority of the gem merchants who attend the Rangoon auctions are from Asian countries, especially China and Thailand9. These two countries also import the bulk of Burma’s precious stones. Burmese jade, which is popular in China, reportedly is increasingly sought after for use in products commemorating the 2008 Beijing Olympics.
Chinese buyers also purchased Burmese gems at a recent China-ASEAN Expo that took place from October 28-31 in Nanning, in southern China. According to a report in the Myanmar Times, Burma’s gem sales at the four-day event amounted to 200,000 Yuan (US$27,000) per day.
Thailand is the main importer of Burmese coloured gemstones, which are cut, polished, and re-exported to customers in third countries. Burmese gems typically are sold on to retailers in Europe, Japan, and the United States. India also serves as a cutting and polishing centre. A considerable number of the highest-quality and most expensive stones are exported to Switzerland for onward sale to the US or other markets, according to industry sources.
Will sanctions help bring a change in junta policy?
At some level the recent sanctions do seem to be having an immediate effect. Trade has been down at the most recent gem shows organised by the Burmese authorities. According to the state-run newspaper The New Light of Myanmar, during the 24th Gems and Jade Sale in Rangoon from January 15 to 18, 2008, 357 lots of jade were sold and the event was attended by 737 local and 281 international gems and jade traders. However the state media did not report, either in print or on television, the profits from the gems fair.
“Usually, they [the state media] would announce the amount of sales made and the income generated from the gems fair,” a trader in Mae Sot said. “But this time they didn’t. It’s obvious they didn’t sell much.”10
However because many of the gemstones are smuggled out of Burma across the mountains and hills into Thailand, China and India, once at destination their ‘origin’ can be manipulated and disguised in most practical purposes, this can be done by traders and middlemen resulting in the end purchaser potentially wrongly believing they come from another country other than Burma.
So without regional powers adopting sanctions preventing the export of Burmese goods, products of Burmese origin are still likely, in some part, to get to market in the EU, US and Canada. The Burmese gems arriving here will come in as Thai, Sri Lankan, Indian or other origin. Admittedly it is possible for gemmologists to identify the country of origin by studying the stones in a lab. Indeed higher value stones are routinely checked by traders and customers however this is not always the case, especially with lower value stones.
With further restrictions on travel and an increase in people’s fear of the junta since the September crackdowns it seems less stones are being smuggled through to Thailand.11 With recent sanctions by western governments against the regime and gemstone industry in particular, as well as a boycott of products by much of the western precious stones industry people are becoming more aware of the problems surrounding the purchase of such goods from Burma and how it is helping fuel the appalling repression of the Burmese people by the military regime.
As consumers we should always ask to see detailed proof of the origin of any stones we buy and be prepared to refuse any that may have come from Burma. We should look to inform others about the problems of purchasing gemstones from Burma and pressure industry members that still trade in Burmese stones to face up to responsibilities concerning the human rights violations of those involved in the industry, particularly those at ‘the coal face’ of the industry.
Most importantly it is imperative that ASEAN members put the human rights of the people working in Burma before there own thirst for profit. The time has long past for them to cease the practice of ‘positive engagement’ with the junta which seems like an excuse for the continued exploitation of Burma’s natural resources for their own financial gain. For sanctions to be an effective tool in forcing change, ASEAN needs to implement them too. Of course this has been said many times before.
Personally as a consumer I would be willing to purchase gems of Burmese origin if I knew there sale would directly benefit those people who had mined them and those being exploited by the military to work the mines for a pittance with mediaeval safety standards. Unfortunately it is very hard to determine who has received money for what along the distribution chain from source to the end purchaser. Thankfully as someone who never has and does not intend to purchase any precious stones in the near future, I will not have to embark on decisions surrounding the moral implications of purchasing smuggled gemstones and which people or groups would or would not benefit from the sale.
For those closely involved in the industry at micro level, those who have a good understanding of how the stones have come to be smuggled across the border, I imagine it would be a hard choice to make, even assuming they cared about the repression of the Burmese people by the junta. Only time will tell what impact the recent sanctions have on the Burmese gem trade and what response we will see from the junta. Let’s hope it helps to tip the balance in favour of progressive and positive change in the political development of Burma toward that of a democratic system.
Endnotes
Inter Press Service news agency RIGHTS-BURMA: Nobel Laureates Appeal to U.N. by Haider Rizvi http://ipsnews.net/text/news.asp?idnews=41277
For a list of Burmese gems sales figures by Palogems.com See http://www.palagems.com/gem_news_burma_stats.htm
Burma: Gem Trade Bolsters Military Regime, Fuels Atrocities. Article by Human Rights Watch November 12th 2007. See http://hrw.org/english/docs/2007/11/12/burma17316.htm
Burma: Gem Trade Bolsters Military Regime, Fuels Atrocities. Article by Human Rights Watch, November 12th, 2007. See http://hrw.org/english/docs/2007/11/12/burma17316.htm
Burma Blood Gems and a Regime’s Quest for Cash; http://www.leberjeweler.com/stones/burma_bloodgems.php3
From an interview with an eyewitness who used to live in a mining area in Burma. Names and places have been removed for security reasons.
Published in an article by Thomas Fuller: November 16, 2007 New York Times
Burma: Gem Trade Bolsters Military Regime, Fuels Atrocities. Article by Human Rights Watch November 12th 2007. See http://hrw.org/english/docs/2007/11/12/burma17316.htm
Inter Press Service news agency RIGHTS-BURMA: Nobel Laureates Appeal to U.N. by Haider Rizvi http://ipsnews.net/text/news.asp?idnews=41277
Inter Press Service news agency RIGHTS-BURMA: Nobel Laureates Appeal to U.N. by Haider Rizvi http://ipsnews.net/text/news.asp?idnews=41277
Sanctions Affecting Burmese Gems Trade By Shah Paung Tuesday, January 22, 2008 The Irawaddy. http://www.irrawaddy.org/article.php?art_id=10005
Sanctions Affecting Burmese Gems Trade By Shah Paung Tuesday, January 22, 2008 The Irawaddy. http://www.irrawaddy.org/article.php?art_id=10005
To read the other articles in the February 2008 Newsletter please click on the links below:
...Tiffany and Co. and Leber jewelers have long refused to purchase any gems of Burmese origins.
