Projects, operations, and future plans are covered in this annual report for the fifth year of the Peace Corps. An introduction overviews past and future activities of the Peace Corps and its volunteers. Section 2 reviews the year 1966 and covers these topics: the new director, Jack Vaughn; countries in which new programs were begun; the Cornell/Peru Report on Peace Corps impact; Peace Corps training; long-range planning; and recruiting. A case study of the Peace Corps program in Niger is presented in the next section to describe failure that is now flourishing after four years. Section 4 is a 24-page pictorial history of the first five years of the Peace Corps. Section 5 summarizes in tables and graphs statistics on the first five years of the Peace Corps and trends for the future, including volunteer assignments by skills; origins and destinations of volunteers; regional maps with tables and graph for Africa, Latin America, North Africa/Near East/South Asia, and East Asia/Pacific; and costs. The report concludes with information on impact at home of the returning volunteer. Five personal vignettes are provided. (YLB)