Yes evil exists and in fact it’s in me and you, it’s called ego – now the Baal Shem Tov explains, like a man fallen asleep in the back seat of a car and the driver goes up a plateau so when he awakes he doesn’t even know that he is higher than before – to a certain extent, had we no ego, we couldn’t form any conception of ourselves (certainly vis-a-vis everyone else) but as Chassidus teaches: God created something out of nothing and our job is to create nothing out of something!