A businessman pauses to check his phone outside the Bank of England. Photograph: Bloomberg
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The Age of Entitlement

The new super-rich have no allegiance, obligation or connection to wider society. They live in a mirror-lined bubble – and a legally entitled one. Can anything beyond another crash change things?

Nobody loved Bowater House in Knightsbridge. The demolition of this late-1950s, modernist mess in 2006 was greeted with general relief. Yet it did have one virtue. Through its core was cut a wide opening for a roadway that gave us all a view of Hyde Park and of a sinewy, thrilling Epstein sculpture of a family group, urged on by the god Pan and racing on to the green sward.

There is no such large opening in One Hyde Park, the building that replaced Bowater House. Instead, Pan has been relegated to the end of a much smaller public road that has been intimidatingly designed to look private. The great people’s invitation into the park has been lost. The public realm has not been abandoned altogether, however. At ground level there are shops, punctuated by some very limited planting. So, if the people care to struggle across the hellish confluence of roads that forms the heart of Knightsbridge, they can peer through the windows to see Abu Dhabi Islamic Bank, Rolex watches or McLaren cars. Things they cannot have.

One Hyde Park was developed by the Candy brothers and the Qataris and was designed by Rogers Stirk Harbour & Partners, the current incarnation of the once-idealistic Richard Rogers practice. The 86 flats start at £20m; a penthouse sold in 2010 for £140m. The building is an aesthetic, planning and social catastrophe. An inaccessible, menacing fortress looming over Knightsbridge, it symbolises the dark wealth of the entitled elite who have claimed the boroughs of Westminster and Kensington and Chelsea as their own. But it is just one big sign of a ruthless landgrab among many little ones.

Staff at the Kensington High Street branch of Carluccio’s – a pleasant, neighbourhood place – dread being sent over to South Ken. That’s banksterland. Mothers disrupt service with their giant baby buggies, the children are rude and even the toddlers snap their fingers at the waiters. Then there are the shops. In Knightsbridge’s “golden triangle” of streets and around Brompton Cross are all the “flagship stores” of the highest of high-end retailers. I used to like going there to watch and marvel at the very rich and to see the beauty that money could buy. Once in a while, feeling a bit flush, I might buy something. Not any longer.

Recently, in an idle moment, I wandered in - to the Ralph Lauren shop at Brompton Cross. I noticed a pair of shoes, quite nice, about £300, I reckoned, allowing for the location and the general flagshipness of the place. The shoes were £750, a price that bore no possible relation to either the cost of manufacture or the quality of the design. These people, I realised, don’t care about only fairly affluent me or my class any more. They’d rather I left, because they can sell all their stuff at any price, in effect, to the bonus boys and girls.

“Almost by definition, these things aren’t for you,” John Lanchester tells me on the phone. He is the author of Capital, the 2012 novel that defined the moral climate that led to the last financial crash. “The whole thing about luxury goods is that they’re an inter - national language. The prices don’t track the middle-class, aspirational market; they’re for the super-rich, who don’t really care what things cost. In fact, they want them to cost more, because the price signifies only that most people can’t afford them.” (Lanchester captured entitlement in the character of Arabella in Capital, a woman so ignorant, vain and greedy, she did not even understand the possibility of being unable to afford something. Now I see and hear Arabellas all around me when lunching in central London.)

Perhaps it was ever thus: the rich have always been different. But that’s not true. Some - thing big, something moral, has changed. Driving through Knightsbridge (occasionally one must) I noticed a huge, absurd, orange and, in London, practically undriveable Lamborghini illegally parked. Once, I would have been amused, but now I feel angry because I know – we all know – it was probably bought with stolen money.

“Shocking” is too soft a word to describe the crimes of the financial sector. They are almost thrilling in their creative abundance – laundering money for drugs cartels; defrauding old people, small businesses, investors and shareholders; rigging markets; sugarcoating dud loans to look like good ones; loading the world economy with ever greater levels of risk and throwing millions of people out of work. And so on. All the time, they were enriching nobody but themselves. The banks and their buddies have been on a crime spree that would have glazed over the eyes of Al Capone.

Yet here they still are, with their undriveable orange cars, their buggies, their dark fort - resses and their rancid sense of entitlement because, in short, they don’t get it. Apparently the bonus boys see “casino banking” as a flattering term rather than the insult intended. Furthermore, the use of vast sums taxpayers’ money to save the banks is seen as no more than their God-given right.

“I live near Wall Street,” the economist Jeffrey Sachs said at an event. “The sense of entitlement is beyond quantification. They could not figure out why anyone might be mad at them for having nearly destroyed the world economy, taken home $30bn a year of bonuses, gotten bailed out to the tune of another trillion dollars and then lobbied for no regulation afterwards . . . I don’t think they were kidding anyone except themselves. I think they don’t get it.”

But we get it and we don’t like the rich any more because they all seem tainted. Lanchester points out that real business people – those who do useful things – are as angry as we are, accusing the bankers of wrecking and discrediting capitalism. (I sympathise. I have always regarded myself as a conservative and still do, but these shenanigans have tainted even that gentle world. Like most true conservatives I know, I regard the failure forcibly to end these abuses as a disgrace and a grave threat to the social peace we crave.)

Certainly people’s attitudes to companies in general has changed. Energy suppliers, telcos, retailers are all treated with a grim, resigned mistrust. To be allowed to participate in the society of entitlement, you have to agree to be ripped off. In spite of this, globally, politicians have decided to ignore the insights and sense of justice of their electorates and shown no desire to restructure a failed and still dangerous system, not even to imprison the most egregious wrongdoers. So the Age of Entitlement endures. What does this mean for society as a whole?

First, it is necessary to understand the origins of this psychology of entitlement. Economically, it can be said to be neoliberalism, the cult of free markets and deregulation that swept the world from the 1970s onwards. In neoliberal thought, expressed most trenchantly by Milton Friedman, the job of a company was to obey the law and reward its shareholders; it was not obliged to take on the wider ethical and moral concerns of society. In the 1980s, this became “greed is good”, certainly not what Friedman meant. I witnessed the cult’s apotheosis at the World Economic Forum in Davos in the early 1990s – I sat in on a meeting at which sharky young businessmen more or less said they would trample on their grandmothers for the sake of the bottom line. Viciousness had been validated. That is the enduring view in the financial sector.

“There is no incentive in the financial world,” a very prominent insider told me, “to be moral.” The point is that society rewards company directors with the enormous blessing of limited liability and, in return, should expect them to behave not just technically within the law but responsibly as persons. Failing – or refusing – to understand this underpins the sense of entitlement. Because much of what they did was not tech - nically illegal, the bankers feel that they did nothing wrong. Yet, in our own lives, we know perfectly well that some of the worst things we can do are not illegal. The financiers’ defence is made even more hopeless by the banks having been anything but good neoliberal institutions. Far from believing in free markets, they acted like a cartel and did everything in their power to rig the markets in which they operated.

Coupled with this was a generational change, identified by Jean Twenge and W Keith Campbell in their book The Narcissism Epidemic: Living in the Age of Entitlement. From the late 1970s onwards, they detected a rise in narcissism among the young. Unlike the generation of the 1960s and early 1970s, these young people did not identify their goals as social or political but solely as personal. “There was a big shift in the 1980s away from the 1960s and 1970s,” Twenge told me, “. . . making a lot of money was no longer suspect. In the 1960s and 1970s it was not cool, but that flipped around.”

So, in the 1990s, a socially and politically quietist, narcissistic and self-seeking generation was well prepared to take advantage of the progressive deregulation of the financial system, primarily orchestrated by the then chairman of the Federal Reserve, Alan Greenspan, a card-carrying believer in the doctrines of the hyper-libertarian fruitcake Ayn Rand. After 1997, the British Labour Party drank disgracefully deeply of this toxic, superstitious cocktail. Peter Mandelson declared that he was “intensely relaxed” about people getting “filthy” rich. In the midst of what turned out to be one of the most lethal (and preventable) bubbles in financial history, this was one complacency too far.

Both psychologically and theoretically, therefore, the Age of Entitlement was firmly established by the mid-1990s; indeed, so firmly established was it that it was imper - vious even to the overwhelming evidence of its fragile foundations. The collapse of the hedge fund Long-Term Capital Management in 1998 nearly brought the US economy to its knees – even though it had Myron Scholes and Robert Merton, creators of the critical equations on which financial neoliberalism was based, on its board. The neolibs sailed on regardless.

And still they sail on. Throughout the crisis, the beneficiaries of the criminality and rigged markets into which neoliberalism had descended continued to enrich themselves. In 2012 the 100 richest people across the world grew $241bn richer, taking their total net wealth to $1.9trn. The poor and the middle classes, naturally, got poorer. Levels of inequality of a kind that threaten the social fabric – especially in the US and the UK – are one of the most alarming legacies of the Age of Entitlement. The crisis is not over; in fact, it may hardly have begun.

Part of the problem is the way the wealthy entitled have managed to make their world so easily selfsustaining. They are certainly good at outsmarting our elected leaders. “George Osborne and his friends go down to the City with some idea,” one hugely rich but very politically aware financier told me, “and the bankers blind them with science – saying, ‘Well, you could try that, but we wouldn’t be responsible for the consequences’ – so, nothing happens.”

The new entitled live in a mirror-lined bubble. Also a legally protected one. I was told of a hedge-fund boss so vile that investors withdrew their money but did not sue, because other hedge funds would then refuse to do business with them. On top of that, they are protected in Britain by libel laws and a tax system that, as John Lanchester points out, not only shields our own entitled from scrutiny but also encourages equally entitled foreigners to come here.

“You might as well say, ‘Bond villains, come and live here,’ ” he says. “Our libel laws don’t help. There are a lot of zillionaires about whom we are going to read the truth uncensored only when they are dead. It’s an astonishing situation, when we have such a proliferation of incredibly rich criminals.”

If that is the tragedy, the comedy is almost as alarming. Even the Financial Times last month was stunned to discover that bankers have been invited into schools to teach our children about money. The Royal Bank of Scotland, our most thoroughly disgraced financial institution, was, of course, represented. I can think of many people I could ask for advice about money. None of them is a banker.

Or there is the way the incontinent vanity of the newly entitled spills over into insults directed at their closest political allies. Towards the end of last year, Kevin Maguire reported in the New Statesman that members of the Bullingdon – the clownish club for the cream of Oxford society (the rich and thick) of which Cameron, Osborne and Boris Johnson were once members – had taken to burning £50 notes in front of beggars.

Most comical, but also most sad, are the attempts by the entitled to fit in with and compromise with the ordinary lives of others. In a remarkable piece for the Sunday Times Style magazine published in December, Kate Spicer interviewed members of the entitled generation that will reap the rewards of the wave of criminality that engulfed our financial system.

Goldman Sachs, Spicer reported, runs a course for partners on “how not to f*** up your kids” which encourages them to take the bewildered brats to the supermarket occasionally. (A friend of mine whom Goldman Sachs attempted to recruit in the 1990s was struck by the way, late at night, there were cars waiting to take the employees home, so that they need never see any street life.)

Unfortunately, the lesson “be nice, be normal” often fails to sink it. Spicer wrote of how Nell, the twentysomething daughter of the strikingly unpleasant former boss of Barclays Bob Diamond, defended her dad on Twitter by suggesting that Osborne and Ed Miliband should “go ahead and #hmd” – “hold my dick”.

Spicer also quoted Alexa, aged 17, who thought it “quite funny – people have no understanding, interest or involvement in something and then suddenly get all het up about it. I went on a drama course. I was one of very few private-school kids. This guy said, ‘Your dad f***** up the country,’ but he had a complete lack of understanding of the situation.”

Sorry, Alexa, but that guy was spot on.

The kids are worried about discrimination. Bankers’ brats now account for between 30 and 50 per cent of the intake of private schools, but they run into trouble when they have to talk to egalitarian-minded university interviewers and tell them that Mummy and Daddy paid for their gap-year adventures.

What is striking, reading Spicer’s interviews and copious other evidence, is that the narcissism Jean Twenge identified as having blossomed in the 1980s is still rampant. The children of the bankers do think they are better than the rest of us and that making money is what matters most.

“You commonly hear from companies now,” Twenge says, “that this generation really have new social goals, helping people and so on. Unfortunately, that is not backed up by the evidence from what the young people actually say. There is no resurgence in the idea that we really want companies to be responsible.”

One final feature of the Age of Entitlement must be mentioned. It is the viciously reductionist mindset behind what now happens in finance. In part, this derives from machines. Computers are like alcohol to Homer Simpson: the cause of and solution to all of life’s problems. Computers made the bubble possible and the 2007 crash (and the next one) inevitable. They created high-speed, mechanised trading and enabled the application of mathematics to the markets – bad maths, as it happened, given that the primary equations were derived from physics that dees not apply to human affairs.

But more important is the reductionism that was implicit in neoliberalism as it became in the hands of the entitled. Money, in this view, is the measure of all things. An angry and very serious financial player told me how he had spent 20 years helping build a company; then the private-equity people moved in and told him he wouldn’t get a penny because he had put no money in. “They were saying all you need to make money is money – you can forget about the decades of work that went in before they even joined the party. They were arrogant beyond belief.”

This reductionism is perhaps the most dangerous assumption of the Age of Entitlement. Money, as Bob Dylan sagely observed, doesn’t talk, it swears, and for this swearing to be effective it must be embodied in an ethical, moral, political and social realm that cannot, in and of itself, be reduced to money. That realm is being eroded rapidly, not only by the entitled, but also by the craven worship of cash that now suffuses the culture. It is this that is successfully disseminating the depraved idea that merely to be rich is to be entitled. To sample the idea, go to the Rich Kids of Instagram tumblr, a website of images of the young wealthy swigging from magnums of champagne and posing next to private jets. The site’s tagline is, “They have more money than you and this is what they do.”

Taxation cannot change this, as the French are learning. The next crash might and several hundred – or several thousand – bankers in prison would help, as would the demolition of One Hyde Park to give us all a view of the green sward. What would definitely change the climate of entitlement would be a dismantling of its psychological basis, the mindset that has created a super-rich class with no allegiance, obligation or connection to wider society. The ears of the entitled need to be unstopped so that we can whisper to them, ever so gently, “If you’re rich be grateful and, here’s another great idea, earn it.”

This article first appeared in the 04 February 2013 issue of the New Statesman, The Intervention Trap

Stuart Ramson for Lumos
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“It’s probably the thing of which I am most proud”: J K Rowling in conversation with Eddie Redmayne

The Harry Potter creator talks to the star of Fantastic Beasts and Where to Find Them about her work with the Lumos charity and the urgent need to end the institutionalisation of children.

EDDIE REDMAYNE: Good evening, good evening ladies and gentlemen.

I am so excited that you are excited! Welcome to Carnegie Hall and – thank you! – Welcome to a very what I hope is a very special evening. More than 25 years ago, an author put pen to paper and created one of the most extraordinary stories that the world has ever seen. Her astounding imagination continues to thrill us, it captivates us, it enthrals us, it moves us, and it leaves us wanting more. And tonight ladies and gentlemen. . . there will be more.

But ten years ago, an unimaginable image and an unthinkable story propelled her down a very different path – where the lives of millions of voiceless children would need saving. The author is J K Rowling, and the path is Lumos.

Tonight, we will cast a light on eight million hidden children around the world who desperately need our help. 

FILM – NARRATED BY J K ROWLING: A child’s life is so much more than the sum of its parts ‐ and the love a family brings holds everything together. From the very beginning, a child thrives on individual care and attention. A baby quickly forges a bond with loving parents – and because of this bond the brain develops with remarkable speed and complexity. Within a safe, secure and stimulating environment a child gets the most out of life; in play, education and friendship their personalities develop freely within safe bounds. But this picture of childhood can be a fragile one. Conflict and disaster can destroy the foundations of family life. When countries suffer the effects of extreme poverty, the bond which holds families together can easily be broken apart. In these circumstances, families can feel they have no choice but to place their child into a so-called orphanage, especially if the child is disabled and needs care the family cannot afford. Community support alternatives may not even exist. That orphanages do exist locally may convince desperate parents that there is no alternative. But once a child enters an orphanage, a very different picture of childhood can emerge. A child must now compete for the unique attention they crave. A lack of individual care harms babies and affects their infant brains at a critical stage. Any schooling they receive is no compensation for the parental love they are denied, and children can become cut off from the world. Ill-prepared for life outside they have very poor life chances, and they are much more likely to fall victim to abuse and crime once they leave an orphanage. And we know there are at least 8 million of these children worldwide. But there is hope ‐ and it lies at the very heart of the problem. 80 per cent of children in orphanages are not in fact orphans but have parents or extended families who could care for them, given some support. And by better channelling of existing donations, we can support these vulnerable children at home. By directing funds away from so-called orphanages we can transform systems of care; we can establish community‐based services and prevent these places from ever taking root. Community‐based services are a better investment for donors: they are more cost efficient than residential care and reward children and communities in the long run. Placing children into orphanages is a choice and not a necessity; it is preventable and reversible. And by giving communities options in how they support families, we can change the lives of millions of children and give them strong beginnings ‐ and the futures they deserve.

ER: So now to hear more about Lumos and its life-changing work, please welcome to the stage its founder. Ladies and gentlemen, the extraordinary J K Rowling.

JKR: Thank you, thank you very much.

ER: So here we are!

JKR: Here we are!

ER: This is a big deal. We’re playing Carnegie Hall!

JKR: We are, yes. It’s actually my second time!

ER: Really? Alright, so in a short while we get to show these people our little movie.

JKR: Yeah, which is exciting and a little bit terrifying.

ER: And we will get onto talking about that in a little bit. But first, the reason we’re all here. So we’ve just seen this film – this is clearly a massive humanitarian issue, and a gigantic undertaking. I wondered: why this issue? Why is it so close to your heart?

JKR: Well, I think Eddie said it really well in his introduction – truth is that I saw a newspaper story about a very small boy, he was seven years old and he was effectively being kept in a cage. And I was pregnant at the time and I saw this image in the newspaper, and it was such a shocking image of this child – holding onto wire and screaming – that I went to turn the page. I went to turn the page because it was painful to look at, and I felt very ashamed. As I went to the page, I thought: No, no, you have to read the story, and if it’s as bad as it looks, you gotta do something about it. So I read the story, and it was even worse than it looked.

So to cut a very long story short, I pulled out the news story – which was all about an institution in the Czech Republic where very young children were being kept in appalling conditions. I went home the next day, Monday, [and] I started to write letters to anyone I could think of – MPs, and MEPs, and the president of the Czech Republic. I wrote to everyone I could think of, and that led me to connecting with experts in this field, and the creation of Lumos.

ER: And so there are eight million children living in orphanages worldwide –

JKR: That we know that we know of! See, I think what’s staggering with. . . what was amazing to me when I first began finding out about this these issues, you think how could eight million children be going through this and we don’t know? But a very small amount of thought shows you they are – as you just said – so voiceless. They are literally hidden from sight. So in fact eight million may be a conservative estimate – there may be more children who have been taken from families that we don’t know about, because record-keeping tends to be poor, which is one of the problems.

ER: And they are institutions that we are saying are harmful to children – I suppose, I imagine, not everyone agrees?

JKR: Absolutely so it is completely understandable that we – and by ‘we’ I mean wealthy Westerners – we may have an idea that institutions are kind. Kind in that otherwise perhaps the child will be on the street, or the child is alone. That’s completely understandable. We tend to have that image in our minds from movies, like Annie, that orphanages can be kind of fun! Actually, that’s not true – even the well-run ones are proven, as we saw in that short film, to do often irreparable harm. You will know, because he has – you have a baby now, who is five months old?

ER: Yup.

JKR: And you will know, as I know as all of us who have anything to do with small children know: that they are hard-wired to demand love. They just come out looking for it, because that’s what they need for brain development. And as was shown in this movie, we know that children who are raised in institutions suffer developmental delays, they tend to be physically stunted, they normally have psychological trauma… it is just not what nature intended for children to be herded together, and not given individual love and care.

ER: And are there sort of studies and statistics which support [this]?

JKR: Absolutely, so I’m not just saying this – plucking this out of the air to tell you. We have 80 years of research now that shows very, very clearly – all the research agrees – that this is very harmful. And in fact Lumos works with scientists in the field who can show you brain scans, showing the difference between a child that’s come from an institution and a child has been raised in a family.

As the movie showed, one large recent study shows that children who come out of institutions were six times more likely to have been abused;

10 times more likely to enter prostitution; 40 times more likely to have a criminal record.

And they were 500 times more likely to kill themselves. So you see we do have this enormous bank of research telling us that we are allowing or even inadvertently causing children to be harmed.

ER: For me, one of the complicated things get my head round – and, I suppose, for people in developed countries like the US or the UK in which institutionalisation is a thing of the past – one of the things we struggle with is there’s this sort of disconnect in terms of how we view orphanages.

JKR: I completely agree. I think a small amount of thought shows us if you imagine what would happen – God forbid – were a terrible natural disaster to hit New York tonight, everyone I think would immediately think “Well, the important thing is I keep my loved ones close to me, we stay together and we get the support we need to rebuild our business, find ourselves a home”… When we put ourselves and our families in that in that mentally in that position we understand. However, what’s happening across the developed world is disaster hits and families are immediately pulled apart: “we’ll take those children from you.” Now, imagine that, in the wake of the disaster, people come to you and say: “that child will get fed only if you give me that child.” And we keep propping up the system, and it’s causing a huge amount of damage.

ER: And so is that why families are being torn apart? Why do parents give them up?

JKR: Right, exactly – for many people, that’s the key question. So when I tell people [that] 80 per cent of these children have parents, then an understandable reaction is “what loving parent could give up their child to one of these places?” But we know that there are three main drivers into institutions. The biggest one, the overwhelming one, is poverty.

So parents who make themselves literally be starving are told “if you want to feed that child, we will take it to the institution – the child will get food in the institution.” So they literally believe “that’s how my child will be fed and survive – I’ll have to give the child.” The other one is disability. We find in the developed world, and certainly this was the case in Eastern Europe, where we’re doing a lot of work, children with disabilities were not integrated. And so parents again were told “if you want medical assistance for a disabled child, or if you want that child educated they have to go into the institution.”

And then the third driver is natural disaster, and this is where a very nasty aspect of institutionalisation comes in. It is often the case in the developed world, the so-called orphanages are run as businesses, and that effectively children are trafficked for profit because we Westerners are generous and we can we give a lot of money to these orphanages. And unfortunately there are very unscrupulous people, who in the wake of disasters use it as an opportunity to get children and corral children as a magnet for foreign money, rather than putting the money into systems of care that would keep families together. So since 2010, there has been a 700 per cent increase in children in institutions in Haiti. 

ER: So, for me. . . what’s the solution? How does one go about it?

JKR: Obviously this is this is a massive issue, a massive issue. And, as you would imagine, the solution is complex but – I bring you hope! This is an entirely solvable issue. This is entirely solvable, and we know how to do it. Doesn’t mean it’s easy – but we know how to do it. So it’s a two-part problem: first of all we have these children, some of them living in truly appalling conditions, whom we need to rescue.

The other part of the issue is we need to stop children going into those institutions in the first place, ever again. Lumos’ ambition – and we believe it’s achievable – is that by 2050 we will have ended institutionalisation globally. Now, that’s going to be a huge amount of work, clearly, but a lot of us are really up for that. So, first thing is we need to put into place different systems of care, and some very good news is institutions are very, very, expensive to run. And if we just redirected the funds that are being pumped into institutions, that alone would enable better systems of care to be set up.

But you also need a lot of expertise, and what we do with Lumos is, we work with people in country who are already trying to change these systems. So that’s the point I always really like to get across, we are not moving into countries and saying: “let us show you how it’s done.” We are walking into countries because in all of these countries there are experts, who know the system’s wrong, but they don’t have the money and they don’t have the clout, and they aren’t connected with the kind of people who can help them change systems. We can go in and help them do, that so that’s what we do. We go in and we try and affect the change.

We also do things like – I mean, we’ve provided urgent medical assistance to children we’ve found in very, very bad situations and so on. So it’s multi-layered, and then the other thing we do is advocacy, so we work with places like the UN and the EU to change policy, to stop this being the default position when disasters happen.

ER: I think I read that every year, particularly in this country [the US], millions of dollars are being given to orphanages.

JKR: That’s right. I have these notes because I want to get the figures right – because normally I just make it up out of my head, like people say “how many house elves are in the Hogwarts kitchen?” and I just [gestures]. But this is really important – I’m not saying house elves aren’t important, they clearly have been massive in my life, they mean a lot to a lot of people. . .

But I want to get this right because this is this important. So, this is an incredible figure: this is how much Americans give to charity annually – how awesome are Americans? – The answer is $375bn. So I mean that is phenomenal, that’s phenomenal and just warms ones heart to think about the generosity. Now, that money was given with the absolute best possible intentions. There’s not one person here tonight, I know, of any age, that does not want to help a child in trouble. It’s a human instinct that we all have.

We know that that money drove a lot of children into orphanages who probably didn’t need to be – well, no child needs to be in an orphanage. But we know that it created a drive-in. And, so what I would like, even if you never give us another penny – I’m so grateful for what you have given us tonight, we will always be able to use money very effectively because these children have very complex needs.

But even if you never give us another penny, if you just walk out of here tonight and explain to people that donating to orphanages or volunteering and orphanages is sometimes propping up some very corrupt people making a lot of money, and if you give your money to community-based services you can actually help ten times as many children. Just checking my notes – ten times as many children.

ER: You mentioned Haiti – that is somewhere that is obviously in our minds of the moment.

JKR: It is, hugely in our minds. In my mind a lot at the moment because, we know and I have more figures here – these are new figures to me, because obviously there’s recently been an absolute catastrophe there. So we now know that there are 30,000 children institutionalised, and the same statistic I keep quoting still applies: the overwhelming majority of those children have at least one parent, and these are families whose livelihoods have been swept away, these are families who were so desperate that they thought that was the only way they were going to keep that child alive. Which is an absolutely heart-breaking thing to me and I know it will be to you also.

There is a lot of corruption in Haiti, and we know that there are people who are called child finders – not childminders – these child finders are out there persuading parents to give up their children to orphanages, and making lots of promises to them about what they can do for that child in terms of protection and care. And those children are not receiving protection and care – rather the reverse.

We know that a lot of child trafficking is going on, and we also know that for each child in an orphanage in Haiti, currently each child is attracting six thousand dollars’ worth of foreign aid, and that’s why it is becoming a business. So people with the best possible intentions are giving money, and I think they might be horrified to see what’s going on. So what I’m saying to you is, for God’s sake don’t stop giving money, but give it right. Give it to NGOs that are working to give people back livelihoods and to support communities, not to institutions.

ER: And Hurricane Matthew has exacerbated that…

JKR: Hurricane Matthew was, as we all know, an absolute nightmare: half a million people lost their livelihoods, we have 900 dead, and it will – unless we intervene in the correct way – continue to prop up this very damaging system. And I will say this because I would like you all to know, that I put my money where my mouth is: I gave a million pounds last week to Haiti to support community-based services. And I’m not saying it for that reason – I kind of cringe slightly as I even say that – because I’m not saying it for that reason. I’m saying that I’m not asking anyone to give where I’m not already giving, but Haiti is a particular catastrophe and I wanted to give extra funds to Haiti right now through Lumos, because Lumos is on the ground right now affecting this kind of change, and really looking out for those children in those institutions.

ER: And recently Bonnie Wright and Evanna Lynch – so Ginny Weasley and Luna Lovegood from the Potter films – who we love! And I think Bonnie is here this evening – but they are two incredibly dedicated Lumos ambassadors, who visited Haiti, and they not only saw the horrific conditions but also they saw the solution that you’ve been talking about Jo and we actually have some footage from the trip here:

FILM – NARRATED BY BONNIE WRIGHT AND EVANNA LYNCH: “Hi, my name is Bonnie Wright and I’m an actress and director. You may know may know me as Ginny Weasley from the Harry Potter films. But today I am here in Haiti with Evanna Lynch, who you may know as Luna Lovegood. We decided to come to Haiti because we’re concerned about the 30 thousand children living here in orphanages instead of at home with their families. 80 percent of these children have families who would care for them but cannot. I was incredibly shocked and upset to find the conditions at the first orphanage we visited. I’ve heard so much about the work that Lumos was doing and from some of the workers here about what these institutions were like, but I think out of this first visit just highlighted how incredibly important Lumos’ work is here in Haiti. The most important thing that I took away from today is that children really need to grow up in families.”

“Without family and without love, children can’t be children. The most important thing as a child is to be with your family, and you have to do everything you can to keep that family unit in place.”

ER: Those are pretty profoundly powerful images.

JKR: They are, they are but you know… we’re obviously doing a lot of work in Latin America now, it’s an area that does have a problem with institutionalisation. But we are very hopeful at Lumos that we could reach a tipping point in five years or so, where we can we can change policy. We are very hopeful that by 2035 – if we can get the funds – we will be able to stop institutionalisation in Latin America. We believe that.

ER: So it’s solvable?

JKR: It is solvable. It sounds overwhelming when you think of that number of children, and the complexity – I’m not denying the solutions are complex. But Lumos is working with absolute experts in this field. They know what they’re doing, they know how to make it work, and what they need are the funds and the support. And the last thing I would say – particularly to young people in the audience today – I would reiterate: we need to change minds.

We need to change minds, because while people are putting money into these orphanages and while people are volunteering in orphanages, a lot of corruption flourishes around those institutions. There is a sense that we are, as ever with the best intentions, propping up something that’s very damaging. Those children should be with their families, and if they can’t be with families, foster care, or adoption, or supported living in small family-style units are all proven to be the best possible alternatives.

ER: What can we do? Tell us what we can do!

JKR: I think its two-part as I say so number one, I am going to firstly say I could not be more grateful all of you being here tonight. You’ve already done the most enormous amount for us to raise money for us and thank you, thank you. So fifty percent of what you can do: if you want to fundraise for us, I will be forever in your debt.

The other half though as I say is, if everyone who is here tonight walked out of here and said: “I get the issue! I know that institutionalisation is wrong, and in future when I donate, when I hear a friend donating, and saying they want to give some money away at Christmas, I will say “not the orphanages.”” But look, if you want to give it to a child in the developing world, look at community-based services. We’re not the only NGO working in the field, we are one of several, so do a little bit of research and make sure that you are supporting families to stay together.

ER: We will spread the word, we will spread the word. That is our job, to spread the word. And I’ve got to say, having known so little about it before, it’s an extraordinary thing and it’s a complicated thing, but as you say solvable. And you must be incredibly proud of the work that Lumos are doing.

JKR: I am – it’s probably the thing of which I am most proud.

This conversation took place on 12 November 2016 at Carnegie Hall, New York City.

This December, the New Statesman is joining with Lumos to raise money to help institutionalised children in Haiti return to family life. In the wake of Hurricane Matthew, funds are needed to help those who have become separated from their families. Please consider pledging your support at bit.ly/lumosns

Thanks to Lumos’s 100 per cent pledge, every penny of your donation goes straight to the programme. For more information, see: wearelumos.org