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The country is internationally recognised as achieving extremely well on a medals-to-population ratio at Olympic Games and Commonwealth Games.

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 (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.

For a variety of reasons many Maori and Pacific people have been socially disadvantaged, forming an underclass in some areas. Cultural considerations for both Maori and Pacific people now have a significant influence on educational, medical and social organisations, particularly in areas with high concentrations of these population groups.

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.

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.

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.

Confronted like Australia with the strategic implications of Britain's 20th-century eclipse as a world power of the first rank, New Zealand joined with Australia and the United States in the ANZUS pact in 1951, but the US suspended its defence commitments to the country in 1986 after the then Labour government banned nuclear-powered or armed ships from New Zealand ports.