Most of us are taught to think in averages. Average cost. Average returns. Average customers. Average outcomes. We’re told that being above average is “good enough.” And when we think about things such as economic development, business, or progress, we often frame it through that same lens.
But averages can be misleading. Imagine an aid worker in a food-insecure region telling a child, “On average, children here are not hungry.” That average hides the very real suffering of individuals.
The problem is that in politics, economics, and business, many of the most important dynamics don’t follow neat averages. They follow power laws.
And if you’re involved in economic development, leading a company, or navigating a complex career path, understanding this pattern can transform how you perceive risk, success, and influence. It’s the first step toward becoming more effective.