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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.

New Zealand was featured as the setting for "Middle Earth" in the renowned early 21st century trilogy of films based on Tolkien's Lord of the Rings books. It has brought an additional interest in tourism to the nation.

The South Island contained most of the white population until around 1900 when the North Island again took the lead and has supported an ever greater majority of the country's total population through the 20th century and into the 21st.

While New Zealand men often take pride in being 'strong, silent types', this attitude may have a downside in contributing to New Zealand having one of the highest suicide rates among young males in the industrialised world.

New Zealand has no formal, written constitution; the constitutional framework consists of a mixture of various documents (including certain acts of the United Kingdom and New Zealand Parliaments) and constitutional conventions. Most constitutional provisions became consolidated into the Constitution Act 1986. There have, at times, been proposals for a formal constitution, but there have not yet been any serious moves to adopt one.

Immigration policy in New Zealand has often been controversial, with some politicians claiming that the pace of immigration has been too rapid for New Zealand to absorb, and that recent immigrants are having trouble adapting to the New Zealand society. This position is seen by others as a cynical appeal to xenophobic sentiment in order to gain votes near election time, and these views are not widely supported by the general population.

New Zealand imports much of its cultural material from overseas, particularly from Britain or the United States. Most successful Hollywood films screen on New Zealand cinema screens and New Zealand Television shows a lot of British and American television programmes. It is somewhat ironic that some of these programmes are now made in New Zealand but receive their first screening elsewhere. The New Zealand cinematographic industry is becoming one of the country's major export enterprises, with several major motion pictures being filmed on New Zealand locations recently, including the highly acclaimed film adaptation of Tolkien's "The Lord of the Rings" directed by the Kiwi Peter Jackson.

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.

God's Own Country, or Godzone, is generally accepted, by New Zealanders if nowhere else, as the alternative name for New Zealand. God's Own Country was the title of a poem about New Zealand written by Thomas Bracken about 1890. (He also wrote God Defend New Zealand, which became the country's second national anthem). It was a favourite saying of Richard John Seddon, Premier of New Zealand for 13 years (1893-1906).

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 (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.

The usual climate throughout the country is mild, mostly cool temperate to warm temperate, with temperatures rarely falling below 0°C or rising above 30°C. Conditions vary from wet and cold in Southland and the West Coast of the South Island, where most of the country's rain falls, to subtropical in Northland. In Wellington the average minimum temperature in winter is 5.9°C and the average maximum temperature in summer is 20.3°C.

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.

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.