The Encryption Debate in Plaintext: National Security and Encryption in the United States and Israel

Abstract

The United States has traditionally restricted the export of strong encryption so as to keep the technology from criminal or enemy hands. This policy was, however, ineffective-those seeking strong encryption simply turned to non-US sources. Facing mounting legal and legislative challenges from the software industry and free speech advocates, in January of 2000 the Clinton administration finally relented and substantially liberalized its encryption export policy. In an interesting parallel, national security-obsessed Israel has also come to recognize that the security benefits of strict encryption regulation do not justify the economic costs. Indeed, though its regulations are comprehensive, Israel has permitted the export of strong encryption for years. Ultimately, then, the central question is now not whether governments will liberalize their policies, but rather how quickly international competition will force the pace of change.