The residents are hiding in the Annex from the Nazi's. They are hiding so that they do not get killed, because they are not allowed in Germany. The Nazi's create many problems for the residents.
The residents in the Annex have helpers that bring them food . However, they can not come all the time because they could get caught by the Nazi's. There is so little food because they all have to share it.
Anne is battling depression. She feels she is not good enough and has many insecurities. She also feels that she has no friends, ugly, and that no one likes her.