New York ? Inside the World Economic Forum, foreign economic leaders criticized the United States on Saturday for protectionist policies they say hurt developing countries. Outside, thousands of protesters demonstrated loudly but peacefully against global capitalism.

Dozens of mounted police guarded the art deco entrance of the Waldorf-Astoria hotel, and hundreds more officers wearing riot gear stood guard as thousands of protesters chanted, banged drums and waved signs near the hotel.

By Saturday evening, many protesters left, but several hundred stayed inside police barricades set up for demonstrations near the Waldorf. Some 4,000 police officers were on duty to maintain calm.

Attendees at the five-day forum are discussing U.S. foreign policy, its possible role in breeding terrorism and the down side of globalization all key issues for the protest groups. Many forum participants were expected to attend a dinner and dance Saturday night at the New York Stock Exchange.

Tariffs, subsidies under fire

At a morning session on the world’s economy, Horst Kohler, managing director of the International Monetary Fund, bluntly criticized the United States for protecting its agricultural and textile industries from cheap foreign competition through tariffs and government subsidies.

Such policies keep poor countries from fully participating in the global economy, he said.

“We need to focus on giving developing countries better access, and this includes the phasing out of these subsidies, which are absolutely distorting and devastating sectors in the poor world,” Kohler said to loud applause from the gallery.

U.S. textile manufacturers have argued against lowering tariffs, saying it would jeopardize American jobs. Government subsidies of U.S. crops such as soybeans help American farmers compete with foreign producers like Brazil which can sell crops for a fraction of U.S. prices.

The European Union also has resisted dramatic cuts in its farm subsidies, and Kohler said those policies also must be changed.

“If we are really serious about globalization to work for all, the advanced countries have to recognize they can’t do business as usual,” Kohler said.

Yashwant Sinha, India’s finance minister, said U.S. and European Union restrictions on steel imports hurt his nation’s steel industry. The United States has placed tariffs on certain imported steel products and is considering whether to impose additional temporary ones.

Significance of location

The meeting of 2,700 business and political leaders and celebrities from around the world is being held in New York partly to show solidarity with the city following the Sept. 11 terror attacks. Although there has been no shortage of expensive parties and gourmet meals, sessions have been dominated by serious talk of terrorism, poverty and anti-Western anger.

Protesters say the forum’s discussions are just lip service. They contend that wealthy countries exploit poorer ones by pressuring them to remove protective trade barriers and by allowing multinational corporations to dominate their fragile economies.

Police scuffled several times with protesters, who shouted “Capitalism? Shut it down!” and “Racism? Shut it down!” as they marched toward the Waldorf with police helicopters flying slowly overhead. About a dozen counter-protesters set up a sound system that blared “The Star-Spangled Banner” and waved a sign saying “Seek therapy.

Police arrested 36 people, including 27 who were carrying wooden shields or mask and were taken into custody based on “specific information” that they planned to attack officers, said Police Commissioner Ray Kelly.

A group of cyber-activists claimed responsibility for crashing the forum’s Web site Friday, but the site was up and running again Saturday.