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RUNNING HEADING: De Beers influence in South Africa
De Beers influence in South Africa
Daria Bragar
03/03/2014
Glenda Fish
Academic Analysis
Abstract
The purpose of this report is to find how De Beers influence political, economic and social situation in South Africa by compering information given by De Beers and information represented by African Peoples Solidary Movement. Also for business report was used facts and statistic that shows welfare of mine workers in Africa. This provide information about De Beers background and there official policy for their mines in South Africa. The collected information compared and contrast. However, company should provide some changes to adjust the effectiveness of cooperation of De Beers and South African Government; for example payment increasing and benefits for workers and citizens.
The purpose of this paper is to find advantages and disadvantages of industrial activities of De Beers Company in South Africa. The company`s influence on African society, political situation and economy. This information would be found buy research. The perspective represented by company would be compared with the point of waive of opposition.
1.2 De Beers background
De Beers Consolidated Mines (DBSM) S.A. was open in 1888, in Kimberley, South Africa. The Now day is the largest diamond producing company in the world. Company co-operates with Ponahalo Holdings. For today DBSM have three large mines in Kimberley, in Venetia and in Voorspoed. (Official web site) De Beers considered as a largest distributor of diamantes in the world. Stars from 20th century De Beers was hardly criticize by public, and accused in the several criminal acts (Encyclopedia Britannica 2014).
1.3Opinion of opposition
Opposition call De Beers` production “bloody” or “conflict” diamantes. African society find company extremely unethical. They accused De Beers in stilling of lands and inhumane working conditions.
According to the official web site company assure people that cities where DBSM`s mines located get benefited by company. The list of benefits given by DBSM shows below.
In addition, in the interview for Africa Business journal given by CEO of DBSM Phillipe Mellier was represented how particularly was benefited Botswana. He assures that because of the creating of the business centre in Botswana thousands of people wold travel there it will benefit service sector like hotels catering entertainment etc. It is also opportunity for job creating and skills transfer. Company provides an opportunity for economic development of country (African Business Journal, 2013)
According to African Peoples Solidary Movement Africa does not get benefited from De Beers. Even thou company gives some small bonuses is nothing compere with all profit that company makes exploiting African nature resources. African government lost control of their lands. The article represents the list of facts that shows negative impact on African economy, environment and society (African Peoples Solidary Movement 2014).
According to information given by De Beers company Africa is benefited from the company`s industrial activity. However all the benefits given by De Beers can be argued. DBSM assure press that they give a wonderful hales care program for workers, but in fact that sites where DBSM mine located have one of the biggest AIDS population on the planet. When in 2012 workers went on strike asking for the 16% payment increasing they was forced to stop. Some of workers were fired. (African Peoples Solidary Movement) That shows that company does not try to provide more comfortable working conditions. Moreover company focusing only on its own profit.
The average payment for the mine workers in DBSM S.A. is 30 cents per day (African Peoples Solidary Movement, 2014). That shows that even though company gives a work places for people it is does not haps to solve the situation with poverty and starvation in South Africa. People used there just like a chip work force.
Analyse of information shows that Africa does not get fully benefited from De Beers Company. The industrial activity of company looks like exploding of African resources. For now day mine workers already have protested. That way it is suggestible that wrong company policy cold lids to harder strikes and meetings. The list below shows what kind of changes can company provide to change the situation.
De Beers should consider interests of workers and African government. Because the idea of the investing in the third world countries based not just on profit but also on providing developing and improving.
References
African Peoples Solidary Movement (2014), DeBeers diamonds website covers up the immense white wealth coming at expense of African oppression and poverty, Retrieved from: http://apscuhuru.org/analysis/diamondsresponse/index.xhtml
De Beers S.A.. (2014). In Encyclopaedia Britannica. Retrieved from http://www.britannica.com/EBchecked/topic/153349/De-Beers-SA
De Beers Consolidated Mines. (2014), Retrieved from: http://www.debeersgroup.com/operations/mining/mining-operations/de-beers-consolidated-mines/
The African Business Journal, (2013) De Beers – Botswana, Retrieved from: http://www.tabj.co.za/southern_africa/de-beers_-_botswana.html