What does the Cayman Islands' Constitution provide in terms of governance?

The governance structure of the Cayman Islands is established by its Constitution, which outlines the relationship between the local government and the British monarchy. The correct perspective is that the Cayman Islands operate under a system where governance is based on a constitutional framework that designates the British monarch as the head of state. This arrangement allows for a significant degree of self-government, as local authorities are given power to make independent decisions regarding internal affairs, while also adhering to the overarching governance of the UK.

This shared sovereignty means that although local officials are elected and hold substantial authority to govern the islands, there are certain limitations and responsibilities retained by the British government. These can include aspects of foreign affairs and defense, ensuring that while the islands have local governance, there is still a monarchy involved in the governance structure. Therefore, the description of governance involving the monarchy with specific local powers aligns accurately with how the Cayman Islands operate under their Constitution.