This chapter introduces the central puzzle of this study: why, in contrast to other states in Southern Africa, have Zimbabwean democratic institutions stagnated or even declined since independence in 1980? To begin to answer this question, an overview of the resource sector in Zimbabwe, particularly the large diamond found in 2006, and the development of institutions since Zimbabwe became independent in 1980, is given. Furthermore, an institutional analysis, a brief overview of past studies, and a research design are outlined. In terms of case selection, Zimbabwe is placed in the overall population of cases when it comes to resource curse dynamics, and the concept of the “opaque” state is defined. Furthermore, Zimbabwe is defined in terms of democratization and state capacity, concepts that will be used throughout the study.

This chapter examines the development of the “mode of exchange” in Zimbabwe’s diamond sector. Before 2006, Zimbabwe’s small diamond production mostly went to Western Europe. During an extensive boom in diamond production from 2006 to 2010, many diamonds were smuggled out of the country amid foreign sanctions and a decline in the formal sector. Since 2010, the formal sector has bounced back, and many diamonds have been sold to the United Arab Emirates. Since 2016, Western Europe has once again become an export destination. However, in all periods, smuggling around the formal economy has persisted and had significant consequences for state capacity and institutions, which are examined in this chapter. This also traces the mode of exchange for other resources, particularly gold and lithium, which have been increasingly important. However, the drastic increase in diamond production that started in 2006 has uniquely impacted the Zimbabwean state. It provided an outlet to ZANU-PF during the economic collapse and increased political scrutiny, especially after the contested 2008 election, and contributed to the party being able to survive politically.

The Kimberley Process is a weak international agreement, so why have states expended scarce resources to stay in compliance? This is the puzzle that will be laid out in the introductory chapter of this book, along with a discussion about the history and nature of the international agreement. The chapter discusses the importance of the diamond trade to the development of many states in Africa. While De Beers has long dominated the global diamond trade, the Kimberley Process was implemented in the early 2000s when the firm was starting to lose market share. Thus, other actors in the global diamond trade are examined, specifically Lev Leviev, who has made inroads into the diamond sector in many of the states examined in this study. The chapter also studies the diamond trade in Africa as a mode of exchange and questions whether the Kimberley Process has influenced this. .