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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 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 first Europeans known to reach New Zealand were the crew of Dutch explorer Abel Tasman's ships Heemskerck and Zeehaen, which anchored at the northern end of the South Island in December 1642 but sailed northward to Tonga following a clash with local Maori. Tasman sketched sections of the two main islands' west coasts. Tasman called them "Nova Zeelanda." The name Nieuw Zeeland appeared on charts of the area shortly afterward, having earlier been applied to an island near New Guinea. Lieutenant James Cook of His Majesty's Barque Endeavour made a fuller reconnaissance, surveying the shores of both islands in 1769 - 1770. Cook returned to New Zealand in both his subsequent Pacific voyages.

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).

The conservative National Party and the left-leaning Labour Party have dominated New Zealand political life since a Labour government came to power in 1935. During 14 years in office (1935 - 1949), the Labour Party implemented a broad array of social and economic legislation, including comprehensive social security, a large scale public works programme, a 40-hour working week, a minimum basic wage, and compulsory unionism. The National Party won control of the government in 1949 and adopted many welfare measures instituted by the Labour Party. Except for two brief periods of Labour governments in 1957 - 1960 and 1972 - 1975, National held power until 1984.

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.

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).

Britain was motivated by the desire to forestall other European powers (France established a very small settlement on Banks Peninsula in the South Island at Akaroa also in 1840) and to end the lawlessness of European (predominantly British) whalers and traders. Maori chiefs were motivated by the promises of protection of their existing possessions (which was only partially carried out) and by the promise of protection against other Maori using muskets obtained from European whalers and traders (the Musket Wars of 1820-1835).

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.

A number of New Zealand commentators have observed that there is no culture in New Zealand. This has led to protests from those who believe that there is a uniquely definable New Zealand culture. Perhaps one of the more memorable protests was the 1980 song "Culture" by The Knobz after outspoken Prime Minister Sir Robert Muldoon stated that New Zealand pop music was not part of the New Zealand cultural scene.

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.