Case #878.0

The International Diamond Cartel (A)

Publication Date: January 01, 1989
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How do bargaining and negotiation work among the partners of an international trade cartel? The international diamond cartel, established in 1888 and controlled by the South Africa-based DeBeers Corporation, faced a series of crises beginning in the late 1970s. Israel sought to upset the cartel's marketing order, Zaire looked for new agents for its wares, and the Soviet Union wanted better terms for its gems. In each case, DeBeers had to reach for different bargaining tools to preserve the order of the cartel.

Other Details

Case Author:
Debora Spar
Faculty Lead:
Dani Rodrik
Pages (incl. exhibits):
Africa, South Africa
The Pew Charitable Trusts