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Kanto and Orre went to war. Orre was focusing the humans while Kanto focused the Pokemon, which is why there is a lack of respectable men in Kanto, and no Pokemon in Orre.
Both used bio and chemical weapons, which is why poison pokemon are everywhere in Kanto, and why Pokemon like Porygon, Blastoise, Mewtwo, Voltorb, and Magnemite exist, and why Orre is mostly desert with a bunch of ruins everywhere, and why there are crime syndicates everywhere instead of an actual Government. Kanto abolished the Orre Government, which led to Orre being controlled by two crime syndicates, whereas the casualities of war caused the Kanto Government to be overthrown, partially, by Team Rocket.
Orre was trying to cut off Kanto's power supplies, which is why you don't see any power stations outside of the Power Plant, which is shoved off in a remote corner of Kanto, likely facing far away from Orre. On the other hand, most cities in Orre generate their own forms of electricity (water power, wind power, geothermal power, solar power).
Orre is known to represent Arizona, and Kanto a prefecture in Japan. It could be an allusion to WWII where Japan caused our Government to go into panic-mode, and we fucking rekt them, causing the Yakuza to temporarily take over. Japan is well known to use industrial forms of energy, whereas America is starting to slowly switch over to "green" energy sources.
Caitlin and Cynthia are childhood friends, and the former will replace the latter when the latter as champ