The Bible seems to say that God establishes all governments. Does He establish the bad ones too?

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In some cases God allows unjust or even evil leaders to obtain positions of power and leadership.  Sometime they even become rulers over nations. That does not mean that God participates in their evil activities.  God can, however, use human deeds -- good or evil -- to help accomplish His greater purposes, which are always good. A Biblical example is His use of evil Babylon to discipline the nation of Judah. He permitted brutal rulers to conquer his people in the hopes that his people would turn again to him. See “Habakkuk 1:6”  God always wants leaders to govern fairly and justly. Sometimes they don't.

Related scripture:  Romans 13:1

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