There are many references to George Orwell's 1984 in this episode. One of the most predominant is the "attitude ajustment center" which is similar to Room 101, where unruly citizens were taken for an "attitude adjustment" (i.e. tortured).
Kim and Ron's roles are similar to that of the main protagonists Winston and Julia (John Hurt and Suzanna Hamilton) from the novel and film, who are rebellious of the totalitarianism in their world.
Shego (in this timeline) is also considered a female version of Big Brother (Bob Flag) from the book and movie, save for the lesser reference to the quote "Big Brother is watching you.", in which the the enigmatic dictator watches through security cameras everywhere.
Drakken represents the book and film's true antagonist O'Brien, even if he did not have any super strength.