Diamonds That Make the World a Better Place - Interview with Martin Rapaport

[denverappraiser]

Rooting for the good guys is not a problem. I’m all for this sort of thing, and I’m a big fan of Mr. Rapaport’s. This does not exist in a vacuum. It’s not possible for customers to earmark the distribution of funds after they make a purchase and the money leaves their hands and attempts to do so almost always seem to backfire. The bad guys will make counterfeits to confuse things, and, more importantly, they will attempt to use their lower prices to make non-fair trade into a feature. Empowerment is the key but it doesn’t seem to be happening with coffee and, since coffee seems to be the oldest and most developed of the fair trade initiatives, it’s seems appropriate to study it. I would love to hear evidence that I’m wrong about the affect that fair trade is having in the coffee growing communities. Is it contributing to the creation of non-coffee income alternatives for those workers or is it just funding for a new paint job on the same old prison?

I specifically disagree that this is an alternative to branding. This IS branding. It’s creating a brand called ‘fair trade’. It’s backed and enforced by Rapaport Group and this brand stands for attributes that transcend the gemological properties of the stone. That’s what effective branding is all about.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[kcoursolle]

Awesome ideas, I''d love to be updated on Martin''s progress with this project.

 

[Regular Guy]

Date: 9/6/2006 3:17:04 PM
Author: denverappraiser

Empowerment is the key but it doesn’t seem to be happening with coffee and, since coffee seems to be the oldest and most developed of the fair trade initiatives, it’s seems appropriate to study it. I would love to hear evidence that I’m wrong about the affect that free trade is having in the coffee growing communities. Is it contributing to the creation of non-coffee income alternatives for those workers or is it just funding for a new paint job on the same old prison?

1) I think it''s reasonable, yes, to study coffee, and good.
2) Not sure why you think it''s not working with coffee...the paper presented in the previous thread showed positive outcomes.
3) Empowerment....well...a fair wage is a start, and it would seem to be fairer under fair trade, with other supports present, too.
4) Rappaport has pictured and understood success to be measured by parallel infrastructure, but I don''t know that that''s part of the model with coffee, particularly.
5) I''ve no sense that the activity associated with coffee harvesting is seen to be similarly prison like...but I''ve done no study of it. Generally...I''ve seen the fair trade coffee movement well regarded, and valued by those that participate.
6) You pay double, as you say, with coffee. Hopefully, this will be less with diamonds. Success need not be marked, however, by everyone switching over to it. Didn''t this thread talk about success based on 10%? And with a 20% markup? I can see this.
7) Yes, who knows the obstacles to success. Marketing talks about things like "pathbreakers" and "eventually doers" on the front and back end of change, and...if this will work to modify or even radicalize production...who knows how long it would take. Perhaps it''s just a niche with coffee, and parked there. If that''s the worst case with diamonds...it''s a good thing for those that want to fund it, and still, it can provide hope for a more thoroughgoing change.

 

[oldminer]

Date: 9/6/2006 3:17:04 PM
Author: denverappraiser

Rooting for the good guys is not a problem. I’m all for this sort of thing, and I’m a big fan of Mr. Rapaport’s. This does not exist in a vacuum. It’s not possible for customers to earmark the distribution of funds after they make a purchase and the money leaves their hands and attempts to do so almost always seem to backfire. The bad guys will make counterfeits to confuse things, and, more importantly, they will attempt to use their lower prices to make non-fair trade into a feature. Empowerment is the key but it doesn’t seem to be happening with coffee and, since coffee seems to be the oldest and most developed of the fair trade initiatives, it’s seems appropriate to study it. I would love to hear evidence that I’m wrong about the affect that fair trade is having in the coffee growing communities. Is it contributing to the creation of non-coffee income alternatives for those workers or is it just funding for a new paint job on the same old prison?

I specifically disagree that this is an alternative to branding. This IS branding. It’s creating a brand called ‘fair trade’. It’s backed and enforced by Rapaport Group and this brand stands for attributes that transcend the gemological properties of the stone. That’s what effective branding is all about.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

You are right, this is BRANDING in a true sense. Much more a real brand than any particular diamond, cut in a certain sort of special way. I think it has real potential. The pitfalls are numerous, so the success potential will be hard to measure. It usre sounds like a worthy thing to attempt.

 

[diagem]

Date: 9/6/2006 10:25:35 AM
Author: Serg

Re: So, I thought we have essentially two situations. 1) What Kimberly was designed to address, which has satisfied 99% of the problem, the cause of which is also past. And 2) a more pervasive continuing economic problem, still pertaining to many of the countries in Africa, and still representing considerably more than 1% of the output of diamonds we see. This, at least, is what I thought Rappaport was trying to establish in his message in the video.

I think, Conflict diamonds was not real reason of Kimberly process. I see two other real reasons but I do not like discuss it on public forum. Try see economical reasons, not ethical. Politics are far from ethic.
Agree 110%!!!

It is Much more easy to find chain of sellers weapon using serial number on weapon.

It is crazy idea : “add paper for rough to control sells weapon”. Hollywood film is stupid, wrong stereotype and simple propaganda.

I am very sorry for my post. Could we closed this topic?

I agree with you that there are "OTHER" reasons that the "diamond conflict" issue was born!!! the main reason was economical!!!

 

[diagem]

Date: 9/6/2006 3:17:04 PM
Author: denverappraiser

Rooting for the good guys is not a problem. I’m all for this sort of thing, and I’m a big fan of Mr. Rapaport’s. This does not exist in a vacuum. It’s not possible for customers to earmark the distribution of funds after they make a purchase and the money leaves their hands and attempts to do so almost always seem to backfire. The bad guys will make counterfeits to confuse things, and, more importantly, they will attempt to use their lower prices to make non-fair trade into a feature. Empowerment is the key but it doesn’t seem to be happening with coffee and, since coffee seems to be the oldest and most developed of the fair trade initiatives, it’s seems appropriate to study it. I would love to hear evidence that I’m wrong about the affect that fair trade is having in the coffee growing communities. Is it contributing to the creation of non-coffee income alternatives for those workers or is it just funding for a new paint job on the same old prison?

I specifically disagree that this is an alternative to branding. This IS branding. It’s creating a brand called ‘fair trade’. It’s backed and enforced by Rapaport Group and this brand stands for attributes that transcend the gemological properties of the stone. That’s what effective branding is all about.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

Its 100% branding, and "backed by the Rapaport Group"!!!
And i hope we all know that Rapaport is a "masive" money making machine in this industry..."
Not to mention the fact that he calls himself a "Group"?!?!?

Dont get me wrong, i respect him a lot, but please dont let him sell us the fact that he is not doing it for his profit purposes!!!
Who is going to enjoy that added value?? The Rapaport Group, thats who...

 

[Garry H (Cut Nut)]

Diagem I think you are too cynical.

I am not even sure that Rapaport is a huge money making machine.
He operates a group because he has many fingers in many pies - that makes his organization a group.

 

[diagem]

Date: 9/6/2006 4:25:17 PM
Author: Garry H (Cut Nut)
Diagem I think you are too cynical.

I am not even sure that Rapaport is a huge money making machine.
He operates a group because he has many fingers in many pies - that makes his organization a group.

Garry, just think about one single part of his "group"...
The monopoly he had for years acting as a "take-in-window" for the GIA....
that is only one "small" example...

There are plenty more...

 

[Garry H (Cut Nut)]

Digem I imagine Martin thought of the idea, approached gIA with an exclusive deal, and they shook hands and said Mazal.
It was an excellent idea. I am sure he does/did it better and cheaper than GIA ever would have been able to with their high costs and luxurious travel for execs etc.

 

[diagem]

By the way Garry, i think its great that you brought that interview with Rap.
I would much more prefer to see you ask him questions, but i know he is a hard guy when it comes to interfering in his "speech"!!!

 

[diagem]

Date: 9/6/2006 4:40:28 PM
Author: Garry H (Cut Nut)
Digem I imagine Martin thought of the idea, approached gIA with an exclusive deal, and they shook hands and said Mazal.
It was an excellent idea. I am sure he does/did it better and cheaper than GIA ever would have been able to with their high costs and luxurious travel for execs etc.

As far as the deal he finalized with the GIA, i think it was a brilliant move on his part, after all he is a "Genius".
I didnt like the part that from that day they "shook hands and said Mazal", the "non-GIA-members" had no option to use Rap services only, since we had no way of shiping our production directly for certification to GIA, they (GIA) didnt allow that.

As far as "cheaper", you are being cynical now:
Lets take the safe examle of Rap receiving a members cost for GIA services..., charging us full price PLUS a half % of the value we declared...

Now, multiply it by (i would guess) a $1,000,000,000 plus worth of diamonds anually, for approx. a decade..., and you can sum up some major BUCKS!!!

Now thats only one single part of the Rapaport Group...

Want me to keep going...

Like i said, i have great respect for Martin as a business man...

 

[denverappraiser]

I have no great problem that he calls his company, which has offices in several different countries and which employs dozens, and possibly hundreds of people, a group. I agree that, if successful, the brand being created here will be of considerable value and it sounds like the intention is for it to be owned and managed entirely by Mr. Rapaport’s company. I, and I suspect Mr. Rapaport, would be thrilled to see credible competitors appear and start vying for the position of the most morally responsible diamond source with a reward of significant profits going to the winner.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[JohnQuixote]

Date: 9/6/2006 1:10:05 PM
Author: Regular Guy

John, you end up saying we''re talking about apples and oranges...and the clarification I was seeking had been just that, suggesting, and wanting to confirm that we are indeed talking about two different situations...one: conflict, and one: fair trade, intending to uplift the conditions of those who need it. I''m glad we agree that these are two situations.

Thanks for explaining Ira. We do indeed. I may have been talking and not listening.