The conference aims to reach a consensus on Iraq's future
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Representatives of the world's richest countries are joining ministers from Iraq and its neighbours at their meeting in Egypt.
The two-day conference began on Monday in the resort of Sharm el-Sheikh. Its aim is to ensure that planned elections can take place in January in Iraq.
Envoys from the G8, China, and international organisations are taking part in Tuesday's session.
Iraq's interim government hopes the event will boost support for elections.
But the BBC's Heba Saleh in Sharm el-Sheikh says the officials drafting the final communique have spent weeks trying to paper over the many differences.
There still a long way to go before pessimism in the region over Iraq's future can be dissipated, she adds.
Date
In Baghdad, Prime Minister Iyad Allawi told the Associated Press that "bankrupt forces" were trying to boycott the election, set for 30 January.
But he said the assault on the city of Falluja, aimed at flushing out insurgents, would help the country move forward to democracy.
Jordan's Foreign Minister, Hani al-Mulqi said everyone should support Iraq's interim government in its efforts to organise elections.
"It is the only political entity in Iraq that can achieve something," he said.
"If there is a boycott of the elections by any group this will not be conducive to pushing the political process forward."
Announcing the election date at the weekend, a spokesman for the independent Iraqi electoral commission said the whole country would take part, even areas beset by violence such as Falluja and Ramadi.
Seal of approval
As well as the country's immediate neighbours, the world's richest and most powerful nations have been invited to the conference.
The UN, the Arab League and the Organisation of the Islamic Conference will all be there to grant their seal of approval to the Iraqi political process.
Iraq's interim government believes the conference will demonstrate that it is serious about launching an inclusive democratic process.
It also wants to use the occasion to pressure neighbouring Syria and Iran to stop militants infiltrating its territory.
Preparations for the conference were marked by disagreements.
France and the Arab League wanted a timeline for the departure of coalition troops, but the US and UK refused.
Diplomats say they do not expect any great surprises at the meeting. But Iran has already said it will take a forceful position and protest strongly about American actions in Iraq.