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While British culture predominates within the country, Maori culture is increasingly being identified with New Zealand, due to haka displays by New Zealand sporting teams, and to tens of thousands of visitors who each year experience and film or photograph Maori culture events held at places such as Rotorua.

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.

New Zealand functions as a constitutional monarchy with a parliamentary system of government. The basic system is closely patterned on that of the United Kingdom, although a number of significant modifications have been made. The head of state is Queen Elizabeth II, but actual government is conducted by a Prime Minister and Cabinet drawn from an elected Parliament.

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.

New Zealand became a British colony in 1840 following the signing of the Treaty of Waitangi between the Crown and Maori chiefs. The Crown was represented by William Hobson, who was Lieutenant-Governor of New Zealand. At that time New Zealand was a dependent colony of New South Wales.

During the late 1980s, the New Zealand Government sold a number of major trading enterprises, including its telecommunications company, railway network, a number of radio stations and two financial institutions in a series of asset sales. Although the New Zealand Government continues to own a number of significant businesses, collectively known as State-Owned Enterprises (SOEs), they are operated through arms-length shareholding arrangements as stand alone businesses that are required to operate profitably, just like any privately owned enterprise. Various items of protective legislation establish business objectives yet prevent shareholding governments from having influence over day to day operations of the business.

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.

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.

From the 1790s the waters around New Zealand were visited by British, French, and American whaling ships, whose crews sometimes came into conflict with Maori inhabitants. The arrival of traders and missionaries in the 1800s and 1810s added to local disputes. The first full-blooded European infant in the territory, Thomas King, was born in 1815 in the Bay of Islands. The initiation of a programme of large-scale settlement and land purchases in 1839 by the New Zealand Company, coupled with increasing French interest in the islands, finally prompted the British government to take control of the situation.

Sporting and outdoor activities still play a significant part in the recreation of New Zealanders. Participation in a sport, rather than mere spectating, is considered a worthy pursuit. Team sports and sporting abilities are generally held in high regard, with top-performing players often becoming celebrities. However, New Zealanders can often be scathing when national sports teams and athletes lose.

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.

In 2004 it began discussing free trade with China, one of the first countries to do so.