This annual report details the work and expenditure of the Department for International Development (DFID) during the period April 2006 to March 2007, working as part of the wider international effort to tackle world poverty and promote the sustainable development of low-income countries. The report includes chapters on: reducing poverty in Africa and Asia and progress towards the Millennium Development Goals; making the multilateral system and bilateral aid more effective; fragile states, conflicts and crises; environment, climate change and natural resources; and working with others on policies beyond aid. The assessment of progress is structured around the DFID Public Service Agreement (PSA) targets.