Jersey Case Study: Part 1

Abstract

In Part I of the Jersey case study we address why the island developed as a functional OFC. Was it purely the result of being a tax haven or were other factors of regulation, secrecy and so on involved? If the tax haven aspect is of significance and if there is a causal relationship with other factors, what is the direction of causation? In this chapter we will examine the major changes in the direction of the development of Jersey’s post-war economy, focusing on the phenomenal growth of the OFC such that by 1994 it accounted for an estimated 54 per cent of GDP. First, we will briefly examine the peculiar constitutional position of Jersey in relation to the UK, and the role of OFC activities in the island’s economy, before examining Jersey’s emergence as an OFC. The OFC is then analysed over five phases from the mid-1950s to the present, evaluating the role of the different key factors and their significance in relation to each other.