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New Zealand's head of state is the Queen of New Zealand, currently Elizabeth II. The New Zealand monarchy has been distinct from the British monarchy since the New Zealand Royal Titles Act of 1953, and all Elizabeth II's official business in New Zealand is conducted in the name of the Queen of New Zealand, not the Queen of the United Kingdom. In practice, the functions of the monarchy are conducted by a Governor-General, appointed on the recommendation of the Prime Minister.

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.

New Zealand was featured as the setting for "Middle Earth" in the renowned early 21st century trilogy of films based on Tolkien's Lord of the Rings books. It has brought an additional interest in tourism to the nation.

British culture in New Zealand has been significantly influenced by Maori and other Polynesians. Scottish influences are strong, mainly in the South Island. In general, early immigrants from other parts of Europe and Asia, and World War II refugees (particularly the Dutch) were readily assimilated.

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's scenery has appeared in a number of television programmes and films. In particular, Hercules and Xena were filmed around Auckland, Heavenly Creatures in Christchurch. The Tribe is set and filmed here too. Peter Jackson shot the epic The Lord of the Rings trilogy in various locations around the country, taking advantage of the spectacular and relatively unspoiled landscapes, and Mount Taranaki was used as a stand-in for Mount Fuji in The Last Samurai. Other movies currently filming in New Zealand include King Kong and The Lion, the Witch and the Wardrobe.

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 modern, developed economy. Its primary export industries are agriculture, horticulture, fishing, forestry and information technology. There are also substantial tourism and export education industries. The film and wine industries are considered to be up-and-coming.

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.

In recent years the government has sought to address long-standing Maori grievances. Parliament established a Waitangi Tribunal in 1975 to hear claims of official violations of the Treaty of Waitangi, and in 1985 the Tribunal gained the right to consider Crown actions dating back to 1840. A programme of widespread economic de-regulation and privatisation of public enterprises undertaken by the Labour government of 1984 - 1990 continued under its National Party successors. In 1986 the Constitution Act came into force, and in 1993 the majority of New Zealanders decided to change the electoral system from the British system of single member constituencies elected by 'first past the post', to a form of proportional representation called Mixed Member Proportional (MMP).