The Organization for Economic Co-operation and Development (OECD) issued on 27 March 1997 a recommendation concerning cryptography policy guidelines in an attempt to foster international co-operation and harmonization. Information is becoming increasingly valuable in society. Globalization of markets, improvements in information and communication technology and the shift to a knowledge-based economy has, furthermore, created an enormous potential for electronic commerce. Conservative estimates predict electronic commerce will have a turnover of more than US $400 billion by 2002. The increasing importance of information and communications has, however, made the information society vulnerable. Cryptography plays an important part in securing transactions in electronic commerce and moreover, in establishing a secure electronic environment in the information society. Fear of privacy infringements and lack of secure methods for electronic transactions has until now been holding electronic commerce back. Cryptographic methods are an essential part in securing electronic commerce. Law enforcement agencies and national security organizations fear, however, that widespread use of strong encryption will impede their work substantially. This thesis analyzes the advantages and disadvantages of strong encryption and how the balance of the conflicting interests has been dealt with in the OECD Cryptography Policy Guidelines. Moreover, shows the thesis how the OECD Cryptography Policy Guidelines have been implemented and makes suggestions on how the guidelines should be implemented.

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