Annemarie van Gaal thinks there are other ways of compensating entrepreneurs who are suffering from the sanctions against Russia.

Here we are, in the middle of a war of economic sanctions with the Russians. Not that it will have any effect, not as long as the rest of the world won’t join in. One country’s loss is another country’s gain.

The Hong Kong capital markets have already elbowed out the European capital markets and the shameless copies made by Asian and South American companies will take over the European production of goods.

Anti-western

On top of that, sanctions are only going to fan anti-Western sentiment among the Russian population. We should realise that no more than 1% of Russians feel that Russia is to blame for the escalating violence in Ukraine. 87% think Vladimir Putin is doing the right thing even if it leads to a third world war.

Meanwhile, big Russian companies are using the sanctions as a marketing tool and are announcing more sanctions. Russia’s largest watch manufacturer has decided to stop exporting to the West. ‘This is my response to the decadent Western countries,’ its CEO said. ‘The workers in the factories are shocked by these rude and dishonest actions.’

Problems

The only effect of the sanctions is more anti-Western sentiment and more problems for growers and other entrepreneurs who won’t be able to keep their heads above water.

I was surprised to hear that EU and Dutch politicians’ immediate reaction was to make plans to compensate the stricken entrepreneurs. Harvests will have to be bought up and the money, apparently, will have to be coughed up by all of us.

Pragmatic

I agree the entrepreneurs should be compensated but why should this cost extra money? Why don’t we think of a pragmatic solution? Now is as good a time as any. I could think of a dozen ways of doing it. Here’s one from perhaps the extreme side of the spectrum.

I think we’re all agreed we need to get rid of the Dutch system of allowances. The family allowance for everybody is obsolete. Suppose we halve it and phase it out over the coming year: half of the allowance is paid and the other half is put on fruit and vegetable debit cards which can be used to do the shopping.

Data

The Social Insurance Bank has the personal data of every inhabitant so introducing such a card shouldn’t be difficult. Family allowances account for €3.2bn of the budget which would leave €1.6bn to indirectly support entrepreneurs hit by the sanctions.

I think it’s a win-win situation. We would help local growers and prices wouldn’t come under pressure. We’d have a healthier society and we’ll have made a start at reforming the allowance system.

Annemarie van Gaal is head of AM Media and a writer and broadcaster.