It’s the type of place, the Pokémon world, where problems we face on Earth just wouldn’t happen. There wouldn’t be global warming, water shortages, or anything like that. It’s a world where the people in it really want to work together with each other. Their value system is such where they would prefer to work together and eliminate these problems rather than feud.
I think the official answer from Junichi Masuda fits where almost all of our hacks are set: the Pokémon world.