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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.

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.

After the Second World War, significant immigration from the Pacific Islands began, so much so that there are now more nationals from some Pacific island nations living in New Zealand than on their home islands. The wide variety of Pacific Island cultures has combined in New Zealand, mostly in South Auckland, to form a distinctive subculture that is separate from the Maori culture.

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.

Because of its long isolation from the rest of the world, New Zealand has extraordinary flora and fauna. Until the arrival of the first humans just a millennium or two ago, 80% of the land was forested and, barring two species of bat, there were no non-marine mammals at all. Instead, New Zealand's forests were inhabited by a diverse range of birds (many of them flightless), reptiles, and insects—some of them almost the size of a mouse (see weta).

The usual climate throughout the country is mild, mostly cool temperate to warm temperate, with temperatures rarely falling below 0°C or rising above 30°C. Conditions vary from wet and cold in Southland and the West Coast of the South Island, where most of the country's rain falls, to subtropical in Northland. In Wellington the average minimum temperature in winter is 5.9°C and the average maximum temperature in summer is 20.3°C.