After the quake that altered the face of the world the old powers tried to maintain control, but in many instances they were not able to hold onto the power that they once had. Thus, new powers and new regimes rose from the destruction.
The coalition has ended due largely to he fact that the major cities of the elves have disappeared along with the large majority of the elven populace. The only remnants of this once great nation are the few outposts and garrisons that lie abandoned.
The dwarves, believing that their mother was angered due to their involvement with their hated rivals and humans, have sealed themselves away, underground and have very little contact with the outside world save it be the few eccentrics who refuse to accept the dictates and superstitions of their elders.