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New Zealand is a unitary state rather than a federation — regions are created by the authority of the central government, rather than the central government being created by the authority of the regions. Local government in New Zealand has only the powers conferred upon it by Parliament. These powers have traditionally been distinctly fewer than in some other countries. For example, police and education are run by central government, while the provision of low-cost housing is optional for local councils. Many of them used to control ports and gas and electricity supply, but nearly all of that was privatised in the late 20th century.

Christianity is the predominant religion in New Zealand, although over a quarter of the population has no religious affiliation. The main Christian denominations are Anglicanism, Presbyterianism, Roman Catholicism and Methodism. There are also significant numbers who identify themselves with Pentecostal and Baptist churches and with the Mormon church. The New Zealand-based Ratana church has many adherents among Maori. According to census figures, other significant minority religions include Hinduism, Buddhism and Islam.

The three "R's" of New Zealand culture are Rugby, Racing and beeR. This cultural image probably has its origins in colonial agricultural New Zealand, when hard farm work such as harvesting, shearing and droving took place in hot summer conditions. The large number of soldiers who left New Zealand to fight in the First and Second World Wars and their subsequent socialising have contributed to this image.

Self-government was granted to the settler population in 1852, under the UK Parliament's New Zealand Constitution Act 1852, with a General Assembly consisting of an appointed Legislative Council and an elected House of Representatives. In 1867, Maori won the right to a certain number of reserved seats in parliament. During this period, the livestock industry began to expand, and the foundations of New Zealand's modern economy took shape. By the end of the 19th century, improved transportation facilities made possible a great overseas trade in wool, meat, and dairy products.

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).

The Cabinet, which is responsible to Parliament, exercises executive authority. (The Cabinet forms the practical expression of a formal body known as the Executive Council.) The Prime Minister, as the leader of the political party or coalition of parties holding the majority of seats in the House of Representatives, leads the Cabinet. All Cabinet Ministers must be Members of Parliament (MPs) and are collectively responsible to it.

Since 1984 successive governments have engaged in major economic restructuring, transforming New Zealand from a highly protectionist and regulated economy to a liberalised, free-trade economy. Despite periods of dynamic growth in the mid 1980s and early '90s, average yearly economic growth has been poorer than expected and is highly reliant on massive levels of immigration to boost GDP. However, since 1999 New Zealand has enjoyed a period of relatively strong and sustained growth.

New Zealand's head of state is the Queen of New Zealand, currently Elizabeth II. The New Zealand monarchy has been distinct from the British monarchy since the New Zealand Royal Titles Act of 1953, and all Elizabeth II's official business in New Zealand is conducted in the name of the Queen of New Zealand, not the Queen of the United Kingdom. In practice, the functions of the monarchy are conducted by a Governor-General, appointed on the recommendation of the Prime Minister.

The judiciary consists of the Supreme Court of New Zealand, the Court of Appeal of New Zealand, the High Court, the District Courts, and other courts and tribunals. Some Judges may sit on more than one.

New Zealand is the most geographically isolated of all countries. Its closest neighbour Australia is 2,000 km to the northwest of the main islands across the Tasman Sea. The only landmass to the south is Antarctica, and to the north are New Caledonia, Fiji, and Tonga.

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.