We present a Hierarchical Identity Based Encryption (HIBE) system where the ciphertext consists of just three group elements and decryption requires only two bilinear map computations, regardless of the hierarchy depth. Encryption is as efficient as in other HIBE systems. We prove that the scheme is selective-ID secure in the standard model and fully secure in the random oracle model. Our system has a number of applications: it gives very efficient forward secure public key and identity based cryptosystems (with short ciphertexts), it converts the NNL broadcast encryption system into an efficient public key broadcast system, and it provides an efficient mechanism for encrypting to the future. The system also supports limited delegation where users can be given restricted private keys that only allow delegation to bounded depth. The HIBE system can be modified to support sublinear size private keys at the cost of some ciphertext expansion.