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New Zealand is a unitary state rather than a federation — regions are created by the authority of the central government, rather than the central government being created by the authority of the regions. Local government in New Zealand has only the powers conferred upon it by Parliament. These powers have traditionally been distinctly fewer than in some other countries. For example, police and education are run by central government, while the provision of low-cost housing is optional for local councils. Many of them used to control ports and gas and electricity supply, but nearly all of that was privatised in the late 20th century.

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.

Because many New Zealanders have to go elsewhere in the world to achieve fame and fortune, New Zealand society is keen to attribute famous people as being New Zealanders, however short their residency in New Zealand might have been. While being born in New Zealand is an absolute qualification for being identified as a New Zealander, attendance at a New Zealand school, or being a permanent resident in New Zealand when fame is initially achieved also qualifies, irrespective of national origin. This sometimes leads to famous people being identified as coming from both New Zealand and another country - often Australia, such as the pop group Crowded House, the actor Russell Crowe, and the Pavlova dessert, all of which are claimed by Aussies and Kiwis as 'theirs'. However, New Zealanders are generally proud to have disowned controversial figures such as Sir Joh Bjelke-Petersen.

New Zealand is a country of two major islands and a number of smaller islands in the southwestern Pacific Ocean. A popular Maori name for New Zealand is Aotearoa, often translated as The Land of the Long White Cloud. New Zealand is a parliamentary democracy and a Commonwealth Realm. New Zealand is responsible for the self-governing states of the Cook Islands and Niue and administers Tokelau and the Ross Dependency.

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.