Economization

Economization is a term used in economics, sociology, and political science to describe the expansion of economic logic into areas previously governed by non-economic norms. It denotes the increasing role of market calculations, cost-benefit analyses, price signals, and efficiency concerns in decision making across institutions, organizations, and social practices.

It involves applying economic criteria to policy and governance, expanding privatization and outsourcing, the introduction of performance metrics and financing models, and the monetization of activities once considered non-market goods. Common manifestations include marketization of public services, competitive contracting, performance-based funding, and the framing of social issues in terms of cost or return on investment.

Scholars trace economization to broader historical processes such as industrial capitalism, the rise of neoliberal governance, and the intensification of managerialism in public and private sectors. The concept is used as a lens to analyze how economic rationality shapes laws, institutions, and everyday life, as well as the ways in which ethical, political, or cultural values are reframed as economic considerations.

Debates around economization focus on its trade-offs. Proponents argue that economic reasoning improves efficiency, transparency, and accountability. Critics contend that it can undermine public goods, equity, democratic deliberation, and social welfare by prioritizing cost minimization over other values and by narrowing the range of legitimate policy instruments.

Economization is not a single theory but a heuristic used to study the diffusion of market logic. Related ideas include commodification, marketization, rationalization, and the neoliberal reorganization of state and society.