The Bailiwick, a particular state structure
The Channel Islands are part of the British crown, but not part of the UK. They were therefore not part of the European Union before the Brexit, and were not strictly speaking affected by Britain's exit from the EU.
The King of England is the sovereign of the archipelago as heir to the last Duke of Normandy. This gives the islands many advantages, not least the ability to retain their status as a "tax haven". Although the inhabitants are primarily Jersey or Guernsey, the islands are subject to the authority of Parliament in London for all matters concerning Foreign Affairs and Defense. All other matters of general policy are governed by the administrative rules of the two Bailiwicks. The Bailiwick of Jersey includes the Minquiers and Ecréhous, and the Bailiwick of Guernsey includes the islands of Alderney, Sark and Herm.
Each bailliage is headed by two personalities: the Bailiff, appointed for life by the King, and the Lieutenant-Governor, the King's representative, usually a British army officer. The Bailiff's powers are vast. He is the head of the legislature, the executive and the judiciary, which is a lot for one man to handle. However, he does not administer alone and, contrary to what some say, the islands are no longer feudal states, having become largely democratic. The Bailiff's powers are counterbalanced by the States of Deliberation , made up of representatives elected by universal suffrage. They issue ordinances and decrees, and decide whether or not to pass particular laws of the United Kingdom. However, laws passed by the States can only amend other legislation, and must be approved by the British Crown. The islands have no political parties, cabinets or prime ministers. Representatives are elected for a 3-year term, and are all assigned, according to their skills, to one of the various commissions responsible for administering the islands.
The main problem with this independence is that it is often impossible to make oneself heard. This is the limit of the archipelago's particularism. Independence does not allow the islands to be sufficiently present in international debates, to make their voices heard and, therefore, to defend their interests. Worse still, Jersey and the Bailiff of Guernsey find it hard to work together and speak with one voice. Perhaps the future will force the islands to pool their strengths in foreign affairs, in order to continue to "exist".
A tax haven
The financial stability of the islands' government, its proximity to the UK and continental Europe and its low taxes attract the financial industry. In Jersey, taxes were non-existent until 1962, when the law limiting interest rates was abolished. Little by little, investment banks became interested in the potential position of the islands, which retained their special status in a Europe under construction, and realized the potential they could represent for their customers and therefore for their own profits. Banks based on the islands are not under UK jurisdiction, and can offer their customers financial and tax conditions that defy all competition, attracted and reassured by the islands' highly stable political system. Today, banks of all nationalities have settled here, and financial activity has become the mainstay of the economy. The archipelago has thus become an international financial center, home to over a hundred banks and more than 33,000 financial institutions.
For the same reasons, many wealthy immigrants have retreated to the islands, avoiding the harsh British taxes. The islands therefore continue to offer a haven for tax dodgers. Speculators are likely to benefit from the strictest banking secrecy and tax immunity for a long time to come. Officially, clients are strictly controlled and undesirables, such as mafias who would like to launder their money here, are, in principle, irremediably turned away as soon as any suspicion arises.
The importance of agriculture
In 1880, the Island of Jersey had 2,600 farms. Today, there are barely 500. Nevertheless, apart from tourism and financial income, the islands' economy still benefits from the fertile soil which, together with the temperate climate, enables the cultivation of early crops. Potatoes are planted in February and harvested in April. Together with tomatoes, cabbages and flowers, early potatoes provide the raw material for exports. Since the war, agriculture has been modernized, and greenhouse cultivation has developed considerably, a somewhat anarchic proliferation that has sometimes altered the landscape. Greenhouses often encroach heavily on the countryside, particularly in Guernsey, where they can be found everywhere. They come in all sizes, from large to tiny when attached to a single-family home. The surprising density of the population, in addition to the greenhouses, doesn't leave much room for the Guernsey countryside. In the 1960s and 1970s, the main crop was the tomato, the Guernsey Tom, which covered 15% of the total cultivated area. In the early 1980s, competition led to a sharp drop in production. Farmers had to switch to new crops, notably kiwis and flowers. Greenhouses have also been modernized and are now computer-controlled (temperature and humidity). Every year, over a million bunches are exported to the UK and abroad. Aquaculture farms have also been set up, notably for oyster cultivation.
Cows and oxen were also bred for meat and milking. From the 18th century onwards, the archipelago's distinctive dairy products were so highly prized in the UK that animals were more carefully selected to create breeds named after the islands. Dairy products continue to be exported, even if the number of head tends to fall every year. It's also an important industry, as the islands are self-sufficient in milk, butter, yoghurt and cream.
Tourism, a pillar of the local economy
Tourism is one of the archipelago's key activities in every respect. Before the Covid-19 pandemic, it accounted for around 20% of GDP. The tourist offices are very dynamic, promoting the destination's many assets. These assets have enabled the islands to attract many visitors, whether for the charm of strolling along the seafront, the joy of swimming on large sandy beaches, the family atmosphere or a definite change of scenery just a few minutes from the French coast. But the islands have also sought to break down the image of "islands for retirees" by promoting a wide range of activities, from fine dining to extreme sports. In Jersey as in Guernsey, festivals and events are multiplying. But the Brexit put a serious dent in tourism figures in 2022. A year later, permission to stay for a day without a passport (with an identity card) sent figures soaring, and at the end of 2023, the measure was extended until at least September 30, 2024. Will it be extended to three-day stays? To be continued...
Fishing, a new post-Brexit conflict
The economy of the islands is also based on the sea and its exploitation. Tourists in a hurry to get here don't always take the time to look at the sea. The fishing trawlers are for him aesthetic objects, the little red buoys at sea, marking the place of the traps, are at most a curiosity. And groups of trawlers returning to or leaving the harbor are a splendid sight. But behind these boats, thousands of jobs and the survival of families are at stake. In simple terms, the Channel Islands lie at the heart of a square measuring around 120 km on each side, representing over a million hectares of sea. While it's easier to delimit a field on land, it's a different matter to draw boundaries at sea. There are two solutions: joint exploitation or demarcation of zones. In both cases, the human problems are sometimes problems of survival, and very often they end in war, as several recent examples in Europe and around the world have shown.
The question of fishing rights has been around for centuries. And it has come back to the fore with a vengeance, following the Brexit and the UK's exit from the European Union. In practical terms, fishermen leaving French ports found themselves almost directly in British waters, and therefore needed a license. And many were left out in the cold, as licenses are very complicated to obtain. Conversely, the French government threatened British fishermen that they would no longer be able to sell their catch in Normandy ports. This was followed by a period of calm between 2022 and 2023, when French fishermen were once again able to operate in Channel waters. The situation then virtually returned to pre-Brexit levels. Unfortunately, new permits came into force on February1, 2023 to control the "extent and nature" of fishing. These new constraints are sure to rekindle tensions. To be continued (once again)...
