Seeking solutions

WASHINGTON-The future of the Free World is up for discussion at the Group of 20 summit Saturday in Washington, where leaders of 20 of the world's most powerful nations are meeting.

These leaders are focusing on what paths to take in addressing the struggling global economy. With the U.S. stock market soaring and plunging, and government bailout architects changing their plans almost daily, the economy continues to be unpredictable. U.S. unemployment numbers are at a seven-year high, but Thursday the Dow Jones industrials climbed 553 points before falling nearly 338 points on Friday.

Also on Friday, Germany became one of the most recent countries to officially succumb to the global recession, with its gross domestic product shrinking significantly.

A draft resolution released by a summit official, which is expected to pass, lays out guidelines for finance ministers worldwide. In an effort to avoid surprise calamities like the one now sweeping the globe, finance ministers will be asked for specific recommendations to review and align global accounting rules and improve the governance of the International Accounting Standards Board, the official said. Essentially, markets will have more regulation and oversight going forward.

Many international leaders see the U.S. government's policy of deregulation as a major cause of the current crisis. France President Nicolas Sarkozy has proposed a global financial regulating body, but the American response to the idea has been tepid.

President Bush fervently defended U.S.-style free enterprise Thursday as the cure for the world's financial chaos, not the cause. He warned foreign leaders ahead of the weekend summit not to crush global growth with restrictive new rules.

"We must recognize that government intervention is not a cure-all," the president said from Wall Street. "Our aim should not be more government. It should be smarter government."

While he decried increased intervention, U.S. lawmakers are considering a second major economic stimulus package, following on the heels of the $700 billion package passed in September. Bush has indicated he does not support a second stimulus, though he supported the first.

Bush put forward his own prescriptions to world leaders, which include bolstering accounting rules, reviewing anti-fraud provisions for trading in stocks and other securities, and improving regulatory coordination among countries. He has proposed bringing more countries to the table at the International Monetary Fund and the World Bank.

The weekend's meeting spotlight the level of Bush's influence with world leaders; the U.S. response to the global crisis, as the largest world economy, will be precedent-setting, though the president is leaving office shortly.

President-elect Barack Obama is not present for the talks, but he authorized former Iowa Rep. Jim Leach and former Secretary of State Madeleine Albright to represent him. Obama's transition team said they primarily are listeners on the periphery of the meetings.

Countries looking to gain more clout on the world stage are pushing their own solutions to the crisis. Japan said Friday that it's ready to lend the IMF up to $100 billion to support nations reeling from the global financial crisis.

British Prime Minister Gordon Brown is expected to unveil a major stimulus package for the United Kingdom soon, following the lead of the United States and China.

In addition to the United States, the countries participating in the talks are Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, and Turkey. The Associated Press contributed to this report.