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Of New Zealand's four million people, roughly three million live in the North Island and one million in the South Island. These islands are among the largest in the world and the combined land area is comparable to the British Isles or the US state of Colorado. Along with Aotearoa, another Maori name for New Zealand was Niu Tireni, a transliteration of the English name.

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.

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.

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.

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.

New Zealand is heavily dependent on trade—particularly in agricultural products—to drive growth, and it has been affected by global economic slowdowns and slumps in commodity prices. Since agricultural exports are highly sensitive to currency values and a large percentage of consumer goods are imported, any changes in the value of the New Zealand dollar has a strong impact on the economy.

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.

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).

New Zealand has a strong party system in place. The first political party was founded in 1891, and its main rival was founded in 1909 — from that point until a change of electoral system in 1996, New Zealand had a two-party system in place. Today, New Zealand has a genuinely multi-party system, with eight parties currently represented in Parliament. Neither of the two largest parties has been able to govern without support from other groups since 1996, meaning that coalition government is common.

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.

After the Second World War, significant immigration from the Pacific Islands began, so much so that there are now more nationals from some Pacific island nations living in New Zealand than on their home islands. The wide variety of Pacific Island cultures has combined in New Zealand, mostly in South Auckland, to form a distinctive subculture that is separate from the Maori culture.

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 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.

New Zealand's scenery has appeared in a number of television programmes and films. In particular, Hercules and Xena were filmed around Auckland, Heavenly Creatures in Christchurch. The Tribe is set and filmed here too. Peter Jackson shot the epic The Lord of the Rings trilogy in various locations around the country, taking advantage of the spectacular and relatively unspoiled landscapes, and Mount Taranaki was used as a stand-in for Mount Fuji in The Last Samurai. Other movies currently filming in New Zealand include King Kong and The Lion, the Witch and the Wardrobe.