The Dragon Lord
Here's the thing. I'm not saying that there is absolutely a government in the Pokémon world. It is fully possible that there is not. All I'm trying to say is that an absence of evidence is not evidence of absence. You're 100% right in saying that there's no way we could know for sure. I've just been trying to point out that you can't argue that there is no government in the world of Pokémon when there's no evidence of that being the case. You're welcome to interpret things like that, but you can't really assert those interpretations.I wasn't going to say anything about game design in a broad sense but I was going to focus more on how the economy is run in the Pokémon world and its implications. But now we're here, since Pokémon is targeted at kids, there is no need to include mature themes and very complicated ideas into the Pokémon games (even though there has been very few exceptions but they are not integral to the Pokémon world). Whether these themes do or do not occur is left up to our own interpretation because there's no way the developers or anyone affiliated with or employed at Game Freak, The Pokémon Company, Nintendo or any other official handler of the Pokémon franchise would reveal their interpretations of such detail to the public and if they did, then it will be treated as canon. It's clear that our interpretations of the Pokémon universe are incompatible with each other and there is no necessity to correct someone over non-canon information as it is not set. If we continued, I know this won't go anywhere near a resolution. And this comes from the official Pokémon support page.
However I am still firm that such crime and regional governments do not exist in the Pokémon universe. There is no obligation for me to agree with your interpretation and we should be left to our own interpretations of the Pokémon universe.