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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.

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 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.

New Zealand became a British colony in 1840 following the signing of the Treaty of Waitangi between the Crown and Maori chiefs. The Crown was represented by William Hobson, who was Lieutenant-Governor of New Zealand. At that time New Zealand was a dependent colony of New South Wales.

New Zealand imports much of its cultural material from overseas, particularly from Britain or the United States. Most successful Hollywood films screen on New Zealand cinema screens and New Zealand Television shows a lot of British and American television programmes. It is somewhat ironic that some of these programmes are now made in New Zealand but receive their first screening elsewhere. The New Zealand cinematographic industry is becoming one of the country's major export enterprises, with several major motion pictures being filmed on New Zealand locations recently, including the highly acclaimed film adaptation of Tolkien's "The Lord of the Rings" directed by the Kiwi Peter Jackson.

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.

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).

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 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.

New Zealand has no formal, written constitution; the constitutional framework consists of a mixture of various documents (including certain acts of the United Kingdom and New Zealand Parliaments) and constitutional conventions. Most constitutional provisions became consolidated into the Constitution Act 1986. There have, at times, been proposals for a formal constitution, but there have not yet been any serious moves to adopt one.

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 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 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 was originally settled by waves of Polynesians, some time between 1000 and 1300, although some evidence now suggests an earlier settlement. Those in the main islands of New Zealand became the Maori people. Separate settlement of the tiny Chatham Islands in the east of New Zealand produced the Moriori people, but it is uncertain whether they went there direct from Polynesia or were mainland Maori who ventured eastward.

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.