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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.

Of New Zealand's four million people, roughly three million live in the North Island and one million in the South Island. These islands are among the largest in the world and the combined land area is comparable to the British Isles or the US state of Colorado. Along with Aotearoa, another Maori name for New Zealand was Niu Tireni, a transliteration of the English name.

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.

While British culture predominates within the country, Maori culture is increasingly being identified with New Zealand, due to haka displays by New Zealand sporting teams, and to tens of thousands of visitors who each year experience and film or photograph Maori culture events held at places such as Rotorua.

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.

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).

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.

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.

Partly because of its geographical isolation from neighbouring countries, and partly because of the number and location of numerous uninhabited islands belonging to it, New Zealand's Exclusive economic zone of marine resources was the world's fifth largest, at 4.2 million square kilometres in the year 2000 (according to New Zealand's National Institute of Water and Atmospheric Research).

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.

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.

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.