God is the Creator of the world. Not only that, He's the Creator of the cosmos and all reality. He is not confined to the reality humans have access to, but He did design it and speak it into being. Everything humans experience is in existence because God's power holds all things together. If this is so, what is responsible for the origin and continuation of evil? If God made everything and holds everything together, is He accountable for evil as well?
Did God create evil?
Looking at things from a human perspective, it would make sense. If God created all things, He must have created evil. However, evil is not a 'thing' like a rock or a puppy. Just as cold is the absence of heat, evil is merely the absence of good. Therefore, creating good was all that was necessary for its opposite to come into being. Although God's creation was good, He put in it two humans with volition, the choice to obey or rebel. Sadly, they chose the latter. Just as Lucifer rebelled against His perfect Creator in the perfect heaven, so Adam and Eve chose to rebel against Him and evil was born out of that rebellion.
This is the definition of evil: rejection of the purpose and the operating system God intended for His creation. The existence of "evil" requires the standard of an outside authority. That authority is the Creator—God. His purpose, His standard as Creator is by definition good. He is not an imperfect computer programmer who constantly has to come up with updates. His ways are perfect, and His creation reflects His character. Anything that does not reflect the character and purpose of the Creator is, by definition, wrong, or evil.
The real question of evil is, Why did He allow Satan and the other fallen angels and the first two humans the choice to reject Him? We do not know the mind of God, but as an omniscient Being, He knew of the rebellion long before it happened. This is not to say He created evil, however. But He did allow it. If He didn't, He would not be sovereign. The only conclusion we can come to is that God's purpose was to create a world in which His glory could be manifest in all its fullness, and that included His allowing evil to exist. The universe was created to display God's glory (Psalm 19:1), and the wrath of God is revealed against those who fail to glorify God (Romans 1:23), just as His glory is on display through His mercy and love to the fallen creatures.
The glory of God is manifest when His attributes are on perfect display, and the story of redemption, which necessitates the existence of evil, is part of that. In the end, God will be glorified as His chosen people worship Him for all eternity with the angels, and the wicked will also glorify God as His justice and righteousness will finally be vindicated by the eternal punishment of all unrepentant sinners (Philippians 2:11). None of this could have come to pass without the rebellion of Satan and the fall of Adam and Eve. God did not create evil, but He did allow it for His perfect purpose.
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Why does God allow evil rulers like Hitler and Saddam to have power?
Truth about God