I have found the quote; it comes from the discussion following the lecture on the culture of the self that Foucault gave at Berkeley's History Department in 1983; which is perhaps why no one could find it. The quote reads:
in the mid C19th (even in 1830) people saw that this was not a good means at all to have docile workers, and that a system like the insurance saving banks etc. was much more efficient than this military discipline. A new kind of organisation developed at this moment: the insurance control system which is much more efficient and much more acceptable than the disciplinary system. In the disciplinary system which is a type of technique, a technology very specific to a certain age, you can find now means much more sophisticated to obtain that people behave in a certain way. The disciplinary system is not efficient. I'll give you an example: even in the army, which has always been the focus of disciplinary techniques, even now disciplinary techniques have changed a lot. Even in one of the most efficient armies in the world, the Israeli one, you could find disciplinary techniques but very little in comparison to what was found in the world war armies.
> -----Original Message-----
> From: mkarskens@xxxxxxxxxx
> Sent: Mon, 2 Apr 2012 11:37:01 +0200 (CEST)
> To: foucault-l@xxxxxxxxxxxxx
> Subject: Re: [Foucault-L] quote
> I think Andre has right.
> The best approximation of your quote that I could find in an interview is
> in Dits et Ecrits IV p. 662 = no 349 = Interview de Michel Foucault (no
> English translation mentioned in Lynch's bibliography):
> "Il est evident que la discipline n'est pas la seule technique de
> controle des individus, mais que la facon par exemple dont on crée
> actuellement la perspective de la sécurité de l'existence facilte la
> direction des individus, bien que ce soit selon une méthode totalement
> différente de celle de discipline"
> The Israel army is not discussed at all in that interview
> Machiel Karskens
> ----- Original Message -----
>> From: "Kevin Turner" <kevin.turner@xxxxxxxxx>
>> To: "Mailing-list" <foucault-l@xxxxxxxxxxxxx>
>> Sent: Friday, March 30, 2012 5:26:04 PM
>> Subject: Re: [Foucault-L] quote
>> He was talking about modalities of power as they are exercised
>> today--that is, the today of the day he did the interview.
>> - K
>>> -----Original Message-----
>>> From: andrenbatista@xxxxxxxxx
>>> Sent: Fri, 30 Mar 2012 12:21:57 -0300
>>> To: foucault-l@xxxxxxxxxxxxx
>>> Subject: Re: [Foucault-L] quote
>>> I don't recall anything on such terms, but on his 1977-8 course
>>> entitled "Security, Territory, Population" he talks about "security"
>>> as a "dispositif" complementary to the disciplinary power that
>>> neutralizes its dangers.
>>> André Nunes Batista
>>> Blog: http://tagesuhu.wordpress.com/
>>> PGP Public Key: 0x7b0590cb6722cf80
>>> On Fri, Mar 30, 2012 at 11:12 AM, Kevin Turner
>>>> Hi to one and all,
>>>> I'm looking for a quote from Foucault in which he said something
>>>> "contemporary forms of power are much more effective/efficient than
>>>> disciplinary modality of power." And although I'm not entirely
>>>> about this, I think he talked about the Israeli army as being an
>>>> of this effectiveness/efficiency.
>>>> Does anyone know where I might find this?
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