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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 judiciary consists of the Supreme Court of New Zealand, the Court of Appeal of New Zealand, the High Court, the District Courts, and other courts and tribunals. Some Judges may sit on more than one.

Rugby as a sport is closely linked to New Zealand's national identity. The national rugby team is called the All Blacks and has the best winning record of any national team in the world. The style of name has been followed in naming the national team in several other sports. New Zealand's national sporting colours are not the colours of its flag, but are black and white (silver). The silver fern is a national emblem worn by New Zealanders representing their country in sport. The haka—a traditional Maori challenge—is often performed at sporting events. The All Blacks traditionally perform a haka before the start of play.

New Zealand's most popular sports are rugby (primarily rugby union but also rugby league), soccer (the most popular sport amongst children), cricket, and netball (the sport with the most players); golf, tennis, rowing and a variety of water sports, particularly sailing. Snow sports such as skiing and snowboarding are also popular. Equestrian sportsmen and sportswomen make their mark in the world (Mark Todd being chosen international "Horseman of the Century"), and all the way down to the juniors at pony club level.

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.

While New Zealand, like Australia, prides itself as being more egalitarian than Britain, there is a degree of inverse snobbery known as the 'Tall Poppy Syndrome', in which people who are seen as (over)ambitious and having ideas above their station are cut down to size. This is also known as the 'Great Kiwi Clobbering Machine', and has prompted many of the country's best and brightest to emigrate.

God's Own Country, or Godzone, is generally accepted, by New Zealanders if nowhere else, as the alternative name for New Zealand. God's Own Country was the title of a poem about New Zealand written by Thomas Bracken about 1890. (He also wrote God Defend New Zealand, which became the country's second national anthem). It was a favourite saying of Richard John Seddon, Premier of New Zealand for 13 years (1893-1906).

Since 1876, local government has administered the various regions of New Zealand. Due to its colonial heritage, New Zealand local government was modelled fairly closely on British local government structures, with elected city, borough, and county councils. Over the years some of these councils merged or had boundary adjustments by mutual agreement, and a few new ones were created. In 1989, the government completely reorganised local government, implementing the current two-tier structure of regional councils and territorial authorities.

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.

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.

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.