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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.

New Zealand has a unicameral Parliament, the 120-seat House of Representatives. Since 1996, New Zealand has used the mixed member proportional (MMP) system, under which each MP is either elected by voters in a single-member (First Past the Post electoral system) constituency or appointed from party lists. Several seats are currently reserved for members elected on a separate Maori roll. However, Maori may choose to vote in and to run for the non-reserved seats, and several have entered Parliament in this way. Parliaments have a maximum term of three years, although an elections can be called earlier.

Christianity is the predominant religion in New Zealand, although over a quarter of the population has no religious affiliation. The main Christian denominations are Anglicanism, Presbyterianism, Roman Catholicism and Methodism. There are also significant numbers who identify themselves with Pentecostal and Baptist churches and with the Mormon church. The New Zealand-based Ratana church has many adherents among Maori. According to census figures, other significant minority religions include Hinduism, Buddhism and Islam.

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

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.

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.

Sporting and outdoor activities still play a significant part in the recreation of New Zealanders. Participation in a sport, rather than mere spectating, is considered a worthy pursuit. Team sports and sporting abilities are generally held in high regard, with top-performing players often becoming celebrities. However, New Zealanders can often be scathing when national sports teams and athletes lose.

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.