Bush to warn of protectionism at summit

President Bush will tell world leaders not to "turn inward or stifle markets" as they seek to fix an internationally slumping economy, a top aide said Wednesday as the White House set an anti-protectionism tone ahead of an unprecedented financial summit.

In the final weeks of his presidency, Bush is convening representatives of some of the world's biggest industrial democracies, emerging nations and international bodies in Washington. The goal is to hasten a coordinated response to the most painful and deepening economic downturn in decades.

Trying to frame expectations, Bush aides said the leaders likely will produce some concrete results, without predicting any of them specifically. The White House also warned anyone hoping for a quick fix that none is on the way. This summit is just the first in a series; the others will take place after Bush leaves office.

Among the key topics are making financial markets more open and less risky, and reinforcing cooperation among countries. Dan Price, Bush's deputy national security adviser for international economic affairs, said the review will encompass what's caused the crisis and what steps can be taken, including what can be done right away.

Yet Bush will also emphasize that reforms, while needed, won't work unless they are accompanied by open trade and competition. The president will urge the government leaders not to "turn inward or stifle markets," Price said.

"Protectionist rhetoric about walling off markets or companies does not help stabilize markets," Price said. "It in fact leads to greater uncertainty."

The White House did not identify specific countries as targets of that message. Price would not answer directly when asked whether it was aimed in any way at the incoming Democratic president, Barack Obama, or Democratic leaders on Capitol Hill.

Heading into the meeting, Europeans are seen as looking more urgently for broad changes and tighter universal banking regulations than the United States.

Price rejected suggestions of discord and said it was "grossly inaccurate" to suggest the U.S. was not taking a firm lead in reform.

"We are no less committed to fixing the problems, and addressing regulatory and other deficiencies, than any other leader," he said.

Price said the economic turmoil has made clear that financial market oversight must be improved, but not with a "single global regulator."

"We are unaware of any support from any quarter for empowering a single global authority to regulate the world's financial markets," he said.

Some critics have blamed lax oversight and failures by regulators in the U.S. and elsewhere to detect problems as one of the key reasons behind the current meltdown. It began with the collapse of the U.S. housing market, froze up credit lines and the broader financial sector, and rippled overseas.

In the United States alone, the nation's jobless ranks zoomed past 10 million last month, the most in a quarter-century, as 240,000 more people lost jobs. In the latest dire sign, American automaking giants say they are struggling to survive.

Obama is steering clear of the summit but will have a couple of representatives available to meet with leaders on his behalf.

The two-day event begins Friday with a working dinner at the White House, then a day of policy discussions Saturday at the National Building Museum.

Besides the United States, the countries represented will be Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey and Britain. Those countries and the European Union make up the so-called G-20.

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