From the BYB.
Quote:
Argentina/Brazil: The Argentinians attempted to reoccupy the Falklands/Malvinas after 1996, and the British were unable to spare more than a token force for the islands defence. Argentina itself withdrew when war broke out with Brazil in 1998, and a small scale exchange of low yield nuclear weapons between the two countries completed their slide into chaos. Central government in both countries has broken down, and both are now divided into semi-feudal territories ruled by military juntas or local community governments.
Other Nations:The interior of the Amazon is total anarchy, the coastal communities are largely insular, and the industrial cities are devastated. Peru is under martial law (cantonments/insular/terrorized) or the control of the Shining Path (cantonments/disputed, terrorized). Columbia, Ecuador, Chile, and the other nations are a mixture of organized, insular, terrorized, disputed, and anarchy.
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Granted 2.x is slightly different from V1 in Europe, but V1 has next to no information on the world outside of the immediate area PCs are expected to be in (ie Europe and the US).
Virtually all of 2.x which covers the same points as V1 is cut and pasted (Germany is one of the few differences).
Therefore, it's not too much of a stretch to apply the 2.x details of other parts of the world to all versions. In that case it would seem South America is not a good choice for the UN to relocate to (Argentina in particular due to their attempted reoccupation of the Falklands - UN presence could be seen as international approval of their action).