Just two years ago, it gave up on its Westminster-style elections in favour of a system of proportional representation called MMP.

Based on the German electoral system, it was introduced in the hope of bringing a new style of politics to the country.

Bryan Gould: All has not gone well

But all has not gone smoothly.

Instead of a new government being formed overnight, as usually happened under the old system, it took eight weeks of tough negotiations for a coalition to be formed.

Bryan Gould reports for Newsnight

And governing has not been straightforward, either, with Prime Minister Jenny Shipley sacking her coalition partner and deputy, Winston Peters. Peters was also the country's treasurer.

Former British Labour MP, Bryan Gould, who is now vice chancellor of Waikato University, explains the situation in a report for the BBC's Newsnight.

Michael Peschardt reports from Wellington

And in a report from Wellington, Michael Peschardt explains New Zealand's particular voting system, and hears from political analyst Linda Clark that politics has taken on a strange atmosphere, like a West End farce.

Although the introduction of proportional representation has not made running a government any easier for Mrs Shipley or her predecessor, Jim Bolger, it has nevertheless had its desired effect in reflecting the diversity of New Zealand.