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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.

British culture in New Zealand has been significantly influenced by Maori and other Polynesians. Scottish influences are strong, mainly in the South Island. In general, early immigrants from other parts of Europe and Asia, and World War II refugees (particularly the Dutch) were readily assimilated.

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 has a modern, developed economy. Its primary export industries are agriculture, horticulture, fishing, forestry and information technology. There are also substantial tourism and export education industries. The film and wine industries are considered to be up-and-coming.

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.

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.

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.

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.

Rugby as a sport is closely linked to New Zealand's national identity. The national rugby team is called the All Blacks and has the best winning record of any national team in the world. The style of name has been followed in naming the national team in several other sports. New Zealand's national sporting colours are not the colours of its flag, but are black and white (silver). The silver fern is a national emblem worn by New Zealanders representing their country in sport. The haka—a traditional Maori challenge—is often performed at sporting events. The All Blacks traditionally perform a haka before the start of play.

Although less obvious today, in the past team sports, particularly Rugby football, gambling on horse races, and sharing a beer after a hard day's work with some good friends or work mates have been significant images of New Zealand life. This predominantly working-class male cultural image has previously been so strong that it has overshadowed other, perhaps higher, cultural aspects of New Zealand society.

New Zealand has a population of slightly over 4 million. About 80% of the population is of European descent. Maori people are the second largest ethnic group (14.7%). Between the 1996 and 2001 censuses, the number of people of Asian origin (6.6%) overtook that of Pacific Islanders (6.5%) (note that the census allowed multiple ethnic affiliations).

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.

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.