Oceania is engaged in a continuous war in order to exhaust its industrial resources and purposely keep the standard of living low. Essentially, continuous warfare is the only way to continue producing goods without increasing the wealth and power of the masses or compromising the nation's industrial strength.
In 1984, the world is divided into three states: Oceania, Eastasia, and Eurasia. Oceania is constantly at war with one of these states while at peace with the other. For the majority of the book, Oceania is at war with Eastasia and is allied with Eurasia.