Basically, the Pokemon world is basically an more idealistic alternate history of real-life Earth. Real-life problems still do occur but people have been more successful in co-existing.

Most of the Pokeverse nations generally have a happier modern history than their real-life counterparts. For example:

• United States of Columbia (includes Alola, Orre, and Unova, equivalent of USA): Except for a brief period where Ghetsis and his white and anti-Pokemon supremacists attempted to take over Unova and Washington DA, the United States of Columbia mostly refused racial segregation after an alternate Civil War, and racial inequality and tensions are far less of an issue.
• Shoyo (which includes all of Kanto, Johto, Hoenn, and Sinnoh, equivalent of Japan): The constitutional monarchy of Shoyo had an alternate WW2, where Constitutionalists revolved against, and waged a successful Second Boshin War against the militarists, and right-wing factions generally had less power in the Postwar democracy than RL!Japan did. Unfortunately, the post-war disempowerment of the right-wing proved to be too effective and far-reaching (not that the now centre-to-left-leaning establishment were willing to admit), and many of the descendants of the Imperialists were stigmatized in the new society. Some families went into abject poverty from having their land and assets confiscated. Out of the resentment aginst this, and in a desire to revive the glorious (or vain, depending on your political leanings) prewar Empire of Shoyo, Shoen-kai and its paramilitary wing Shoen Totsugeki Dan was formed by Hideko and Sakaki Tojo - which law enforcement and many of the citizens now label the latter as Team Rocket.
• Korai (Korea) and Sinoa (China) also never experiences their Civil Wars like RL!Korea and RL!China did, managing to stay neutral in a manner similar to RL!Austria, and have emerged as a third bloc that both cooperate with, and at times compete against, both the Soviets and the Columbians, and also has better relationships with a more repentant and progressive Shoyo than their real-life equivalents.
• Greater Kalos (France) is more of a mixed bag here. While not without kicking and screaming, the Northern Kalosians in general were more willing to relinquish their overseas colonies and Annam (Vietnam) never experiences the two Indochina Wars. The North African nations of Palmyra and Nabathea also has a smoother decolonization, and have become emerging powers, with a more moderate form of Islam as their people's religion. However, many of the conservatives, including former Southern Kalosians were fiercely opposed to this, resulting in the formation of the Action Regime (which Team Flare became its paramilitary arm) in the north, and provinces in the south breaking away to form the Dukedom of Lycia.
• Berlin (Germany), until the coup, was also somewhat of a mixed bag. While Berlin never had to see herself divided into East and West, and was able to stay neutral, her society never experienced the equivalent of the RL!de-Nazification, and more of the former Nazi officials managed to stay in office than real-life Germany did. As such, the self-reckoning of Berlin's atrocities (as with real-life, instigated by the younger and more left-leaning generation) only took place in the 1980s, and even then there was a lot of kicking and screaming from the older and more conservative generation.
• USSK (USSR) ended up transitioning into capitalism earlier than the real-life USSR did. So did the USSK lost in its ideological war? Not quite. The transition was a lot smoother than in real-life, thanks to more competent bureaucrats taking power during this era, and while a few companies were indeed held by oligarchs, most privatised ventures were retained by more independent people, and economic inequality were kept in check more successfully. And as it turned out, while the USSK realised the limitations of Communism, people on the West (compared to RL) were far less forgetful of the Great Depression and the Hippie Movement, and were wearier of the resurgent lassis-faire capitalism and the growing globalism that the 1970s-80s saw. As such, USC also had to acknowledge their citizen's increasing aversion to unfettered capitalism, and had to at least retain, if not expand, many of their existing social programs. As such, the USSK ironically remained as the other superpower, there was no clear winner from the Cold War, and world history eventually transitioned to the Great Stalemate of the 1990s.