Bush said the free market system was not to be blamed for the crisis [AFP]

Leaders of 20 most influential nations and emerging economies are meeting in Washington DC on Saturday to develop long-term reforms to prevent the crisis from turning into a prolonged worldwide recession.

"I am pleased with progess we are making to address the current crisis," Bush said on Saturday.

Stressing the importance of "open markets and free trade", the US president said: "One of the dangers is that people will start to implement protectionist strategies.

"But, the conversations have not ended ... I am pleased that we are discussing a way forward so that such a crisis will not occur again," he said.

Dinner debate

The G20 leaders, including leaders of Brazil, India and China, met over dinner on Friday evening before holding several meetings on Saturday.

"The leaders had a good, productive meeting," Dana Perino, the White House spokesman, said.

"The managing director of the IMF, the president of the World Bank, the chairman of the Financial Stability Forum, and the United Nations secretary-general discussed the steps their organisations are taking to address the global financial crisis."

Poverty push

G20 factfile

Established in 1999 to represent the world's key economies on global financial matters

Its 19 member states, plus the EU, account for 85 per cent of the world economy and two-thirds of its population

Members include both developed and emerging nations that are considered to have strategic economic importance

"Poverty is the most urgent crisis facing the world," Louis Michel, the EU Development Commissioner, said in a statement.

"The 'Bretton Woods II' summit in Washington offers a crucial opportunity to integrate the development dimension into the new international financial architecture," he said.

Bretton Woods in New Hampshire was the location of a meeting where the World Bank and the International Monetary Fund (IMF) were set up in 1944.

Barack Obama, the US president-elect due to enter office on January 20, is not attending.

The financial crisis began when the US real estate market collapsed as a result of the subprime mortgage crisis, spreading swiftly to the financial sector.

A cash crunch in the banking sector then caused the US credit market to seize up in mid-September, hurting businesses and sending stock markets spiralling downwards.

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