In certain jurisdictions, use of cryptography by the private sector is limited: e.g. there are reports that in the UAE and other countries not all of the encryption capabilities of the BlackBerry are permitted. Similarly, in the 1990s the U.S. government tried to force the use of Clipper, encryption hardware that would have led to all private sector encryption keys being escrowed.
Let's assume that your business needs to operate in a region where encryption is either completely forbidden, or its use is limited to the point where you don't believe it is effective. Of course, your organisation's confidentiality requirements haven't changed...
What do you do? Do you believe it is still possible to protect confidential data? If so, how?
Update as different sovereignties have different ways of writing, amending, enacting and enforcing laws, it's hard to say exactly what the text of such legislation would look like. Feel free to make (and state) assumptions, within the scope of the scenario described above: that encryption is not legal or not useful.