I consider government as the administration of populations, and the economy as an instrument of government that effects how population and space are variously constituted as political problems. Michel Foucault has noted that modern power consists of interacting relationships among sovereignty (power over life and death), discipline, and government (regulation). This triangle of “sovereignty-discipline-government… brings about the emergence of populations as a datum, as a field of intervention, and as an objective of governmental techniques.” Such strategies of government isolate “the economy as the science and the technique of intervention of the government in that field of reality.” I use Foucault’s insights on economic rationality in technique for governing populations in a field of intervention, recasting them in the light of contemporary technologies of governing. Neoliberal reason, I argue, has taken economic rationality in a highly flexible direction that does not use the national territory as the overriding frame of reference for political decisions. Rather, the neoliberal stress on economic borderlessness has induced the creation of multiple political spaces and techniques for differentiated governing within the national terrain. Especially in emerging, postcolonial contexts, varied techniques of government rely on controlling and regulating populations in relationship to differentiated space of governance, with a graduating effect on sovereignty, and on citizenship