The British founded the first European settlement in 1788 and named it Sydney. Many of the first settlers were convicts, but free settlers started to arrive in increasing numbers, particularly after the discovery of gold in the mid-19th century. Today, over 90 percent of the population in Australia is of European descent, with less than 3 percent descended from the indigenous Aboriginal population. Originally composed of six separate colonies of the British Empire, Australia's path to independent statehood began with the formation of a common federal state in 1901, and was largely complete by World War II. The last few remaining constitutional links with the United Kingdom were severed in 1986. However, Australia remains part of the British Commonwealth, and the UK monarch remains the formal head of state, represented by the governor-general, who has a largely ceremonial role. In recent decades, Australia has transformed itself into an internationally competitive, advanced market economy, being one of the world's strongest economies.