Ubuntu Security :: How To Avoid Govt. Sniffing And I-net Censorship

I have recently started using Ubuntu, so far I am quite satisfied with the switch in OS. This time my question has more to do with privacy, govt. sniffing of private/personal communications, Internet censorship and what to do about these issues. I live in a South American country where the govt. wants to impose Internet censorship such as the one currently in place in Iran, Cuba or China. They plan to set up a single node for all Internet communications out-going and in-coming. I would not be surprised if they are already monitoring people`s communications illegally.

1. what can be done to avoid being censored? they will be able to monitor my email accounts, facebook, twitter and so on. They want to force the Internet Service Providers and telecom companies to censor their users, since those companies will be responsible for the content of the emails, sms, tweeter messages, etc.

2. What can I do to avoid their censorship of certain contents which are critical of the govt. or contrary to the regime`s views? I need to be able to read what other people are saying beyond the borders of this country. We can`t tolerate living with this ban. Certain contents coming from abroad will be blocked.

3. How can I protect my email and bank operations? Is a proxy server an option? I really don`t know what a proxy server is, how much it would help us avoid govt. sniffing in private matters for political reasons.

4. what additional measures can be taken? is using encrypted messages an option to communicate with my relatives in order to prevent the govt. from reading my emails?