This is an age-old question and different people can answer it in different ways.
One of the most typical answers is that God has allowed all people to have free will. God had to do so in order to allow people to be good. If we do not have the choice to be evil, then our good actions have no moral value. But if we have the choice, then it can be to our credit when we are good.
For this reason, God gave us the ability to be good or evil. Sadly, some of us take advantage of the opportunity to truly be evil.
god has provided us with free will. it totaly depends on us what we chose.if we observe the situations in our dailt life we will see that most of us remember god in bad times. so when there is evil we are reminded of god, thus his (god) existence is marked by it. also when we suffer from evil then only we understand the value of goodess.
so god has maintained a balance in this world
A classic question which always produces the 'freewill' get-out clause for God's culpability.
But, if God is omnipotent, as the Bible and Koran claim, then we have no freewill. God's Omnipotence and Human Freewill are mutually exclusive. Basically, he made you a rotten sinner then blames you for being a rotten sinner. This does not make sense.
Why did God make me an atheist? If he is going to burn me for eternity for being an atheist after I die and knew that I would be an atheist before he made me, why did he make me? This does not make sense.
My atheism is not stubborn disobedient 'freewill'. I have searched my heart and searched the world and I am FORCED to conclude that there is nowhere near enough evidence for a theistic God. So, if I am wrong and there IS a theistic omnipotent God who intends to grill me for eternity for reaching a rationally, inevitable conclusion, then I am forced to further conclude... that God is not a good God and we are all in deep doo-doo.
But a much more rational conclusion to 'How can a good God allow an evil world' is that God doesn't prevent evil simply because a theistic God does not exist. He never has and never will.
The fact is, nobody knows whether GOD has qualities or not.We,in the name of religion assign 'good'qualities to GOD and in the same breath, try to explain away the 'presence' of evil in GOOD GOD's territory!
We tend to ignore the truth that both,good and evil are subjective- our OWN ideas.We need to go beyond ideas-borrowed or learned- to 'know' the truth regarding the 'goodness' of GOD.Pure faith,study and independent contemplation are first few steps...
I read an essay named "On affectation", probably written by A. G. Gardiner. There he wrote, "Nature has bestowed on us her gifts equally and yet there are differences among us because it is education and situation that makes the difference."
God is good and if we believe he send us in human body and even he keeps on witnessing what we have been doing, yet when we are born, we know not evil. Later on some of us either imitate from our kith and kin or society; or affect others vices. Thus God is not responsible for how I act here in the earth.
Its the game of our mind, it becomes attracted by virtues as well as vices. The comes into contact with phenomenal objects through sense organs and act accordingly with organs that work. By and by we become accustomed to working in the same manner and it become very difficult to give up.
The way the Universe operates is out of God's hands. It is a great mistake to believe that God controls everything and is behind every miracle or disaster. Although God claims that He Created the Universe, he is a material being living inside of it, who may have more knowledge of the secrets of the Universe but does not have complete control over it.
The Christians will tell you that bad is supposed to happen on Earth because it is the "Devil's playground". In the Beginning Times God had a conflict with Satan and cast him to Earth along with 1/3 of His angels instead of destroying them. Destroying them right then and there would have given them no choice to stray, and therefore humanity would have no free will. Christians love to blame the Devil for terrible occurances on Earth but the truth is, neither the Devil nor God are fully responsible for every single good or bad thing that has ever happened: the code of the Universe is responsible for this (fate and Destiny).
When something terrible happens to a person, they should not curse God or lose faith in His existense, and they should not blame the Devil either. That would be like holding the President directly responsible for your relative dying in a drunk driving accident. What one should do is curse their unfortunate fate and realize that "good" and "bad" are one of the same to the infinite Universe.
What they said, God allows us to do whatever we want, which balances the world out. And if you have a question on why God allows death and everything, like I said before, it balances the world out. If God saved everyone from death, the world would be overpopulated and many people would die of hunger and thirst.
remember God Almighty has given us the Free-will, we can either choose to do good or bad but we Must submit our Will to HIM
there is an evil in the world so you can recognize the good,