It is a good idea to regulate the trade in minerals originating from the strife-torn Democratic Republic of the Congo. As with Sierra Leone and other countries and regions wars in which were funded, and despots enriched, by the trade in diamonds and other precious minerals, strict controls on the export of such minerals by other nations can help restrict the flow of money warlords use to finance their military activities. This form of economic sanctions, as with others, is not foolproof; on the contrary, smuggling in banned items and substances, like ivory and conflict diamonds, will continue as long as the market for these goods exists. Restricting trade in these goods, however, can have a beneficial impact on the conduct of the wars and insurgencies that are fueled by the proceeds from the sales of minerals.
There is no question that regulating the trade in minerals from the Democratic Republic of the Congo (DRC) impacts the consumers of such items. By limiting the volume of precious metals and other items available on the open market, the value of those metals and items legitimately and illicitly available increases, often exponentially. It is the basic rule of supply and demand. When the latter exceeds the former, the price of the good or service in question goes up. Consumers in the United States, Europe, Asia and elsewhere will almost always, consequently, pay more for the controlled items. To the extent that these minerals are used in the manufacture of electronic goods, for example, the price to consumers of those goods will invariably increase.
All industries that utilize minerals from a country or region on which international sanctions have been imposed will feel the effects of limitations on the trade in those minerals. As mentioned, the consumer electronics industry is a major user of some of these minerals, as, obviously, is the jewelry industry. Manufacture of high-performance jet engines feel the pinch because of their utilization of cobalt, chromium and nickel. The gold market, which plays a major role in the stability of international economics, is impacted by the restriction on exports from the DRC, although other sources, including the United States, Australia, Russia and Indonesia are more important sources of gold than is the DRC, thereby mitigating the effects of sanctions on that central African country. If one had to select one industry as the hardest hit by restrictions on the export of minerals from the DRC, however, it would be the consumer electronics industry, which utilizes vast quantities of precious (including so-called “rare earth”) minerals.
The scale of bloodshed in the eastern region of the DRC and along its borders with Rwanda, Burundi and Uganda has been almost beyond comprehension. If a higher retail price for consumer goods is the price that must be paid to lessen that bloodshed, it is a price worth paying.
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