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In October 1990, the National Party again formed the government, for the first of three, three-year terms. In 1996 New Zealand elected its first MMP Parliament. The system was designed to increase representation of smaller parties in Parliament and appears to have done so. Since 1996, neither the National nor the Labour Party has had an absolute majority in Parliament, and for all but one of those years, the government has been a minority one. The current Labour government followed its November 1999 election success by outpolling National 41 per cent to 21 per cent in the July 2002 general election. Labour formed a coalition, minority government with Jim Anderton's Progressive Coalition, a left-wing party (subsequently named "Progressive Party") which holds two seats in Parliament.

New Zealand Standard Time is 12 hours in advance of Coordinated Universal Time (UTC). Between the first Sunday in October each year and the third Sunday in March of the following year New Zealand observes Daylight Saving time which is 13 hours ahead of Coordinated Universal Time. The Chatham Islands are 45 minutes ahead of New Zealand standard and daylight times.

In recent years the government has sought to address long-standing Maori grievances. Parliament established a Waitangi Tribunal in 1975 to hear claims of official violations of the Treaty of Waitangi, and in 1985 the Tribunal gained the right to consider Crown actions dating back to 1840. A programme of widespread economic de-regulation and privatisation of public enterprises undertaken by the Labour government of 1984 - 1990 continued under its National Party successors. In 1986 the Constitution Act came into force, and in 1993 the majority of New Zealanders decided to change the electoral system from the British system of single member constituencies elected by 'first past the post', to a form of proportional representation called Mixed Member Proportional (MMP).

Partly because of its geographical isolation from neighbouring countries, and partly because of the number and location of numerous uninhabited islands belonging to it, New Zealand's Exclusive economic zone of marine resources was the world's fifth largest, at 4.2 million square kilometres in the year 2000 (according to New Zealand's National Institute of Water and Atmospheric Research).

New Zealand was originally settled by waves of Polynesians, some time between 1000 and 1300, although some evidence now suggests an earlier settlement. Those in the main islands of New Zealand became the Maori people. Separate settlement of the tiny Chatham Islands in the east of New Zealand produced the Moriori people, but it is uncertain whether they went there direct from Polynesia or were mainland Maori who ventured eastward.

The remoteness of many parts of New Zealand and the distance of the country from much of the developed world meant that things that were easily obtainable in other parts of the world were often not readily available locally. New Zealand has only recently experienced economic development outside farming, so traditionally, Kiwis are jacks-of-all-trades to some extent, willing to roll up their sleeves and have a go. Most highly industrialised countries produce experts trained in narrow fields of specialisation, but New Zealand professionals are often generalists as well. This reputation often makes New Zealanders uniquely valued employees in overseas organisations.

New Zealand comprises two main islands and a number of smaller islands. The South Island is the largest land mass, and is divided along its length by the Southern Alps, the highest peak of which is Mount Cook, at 3754 metres. There are 18 peaks of more than 3000 metres in the South Island. The North Island is less mountainous than the South, but is marked by volcanism. The tallest North Island mountain, Mount Ruapehu (2797 metres), is an active cone volcano.

New Zealand (like Fiji) decided against joining the Commonwealth of Australia in 1901, and instead changed from being a colony to a separate "dominion" in 1907, equal in status to Australia and Canada. New Zealand retained an avowed loyalty to the British Empire of which it formed a part, and contributed proportionally large numbers of troops to aid Britain in the Boer War (1899 - 1902), World War I and World War II (see New Zealand in World War II). New Zealand's complete independence was formalised by the 1926 Balfour Declaration and the 1931 Statute of Westminster, ratified on November 25, 1947. The monarch of the United Kingdom remains the monarch of New Zealand, which has been an independent constitutional monarchy. In 1951, the Legislative Council was abolished as ineffectual, thereby creating a unicameral legislature.

Political separation of the two islands was an issue in the 1860s. The more populous North Island was riven by war and political turmoil while the South Island was prospering, especially after gold was discovered (1861) at Gabriel's_Gully in Central Otago. The South Island grew very tired of financially supporting the North Island while receiving very little in return. The feeling was particularly bitter between Auckland and Otago where Dunedin journalist, Julius Vogel began a strong campaign to make the South Island completely independent. The matter was put to a vote in Parliament on September 19, 1865. Seventeen members voted for separation and 31 for unity, so New Zealand remained united. Vogel later became Prime Minister of a united New Zealand.