Based on the Committee on the Next Agenda's analysis of four major aspects of public policy, recommended presidential initiatives for President Reagan's second term in office are outlined. Biographic information about Committee members and a summary of initiatives preface the report. Section 1 examines initiatives related to the role of government in a free society. Section II "Domestic and International Economic Policy," presents short-and long-range economic policy objectives for 1981 and 1985. The third section, "U.S. Foreign Policy and National Security," presents constraints to a coherent foreign policy (including friction between the Congress and executive branch and reforms within the executive branch), and maintenance of national security via President Reagan's Strategic Defense Initiative (SDI). Suggestions for cost-effective defense are followed by discussion of regional issues such as U.S. involvement in Central America, U.S. security interests, and achievement of U.S. objectives. Recommended ways of maintaining the diplomatic initiative precede the final section which examines the need for a new social contract. Topics in this section include information on the legal system, government and ethics, poverty and welfare dependency, education and American culture, health care delivery, the work force, and immigration. (LH)