By setting 1984 in London, Orwell is able to invoke the atmosphere of a real war-torn community, where people live in "wooden dwellings like chicken houses" in bombed-out clearings. His intent clearly was to capitalize on a memory that every reader, especially a British reader, was likely to have. London in 1984, then, becomes not just a make-believe place where bad things happen to unknown people, but a very real geographical spot that still holds some connection for the modern reader.
In 1984, the world is sliced into three political realms — the super states of Oceania, Eastasia, and Eurasia. Orwell drew these lines fairly consistent with the political distribution of the Cold War era beginning after World War II. Each of these three states is run by a totalitarian government that is constantly warring on multiple fronts. By creating an entire world at war, Orwell not only creates a terrifying place, but he also eliminates the possibility of escape for Winston, who is forced to live within his present circumstances, horrible and unremitting as they are.
