Answer: There is reward and punishment in our world, good and bad people, and everything else that you see and understand. It is written: “The world behaves according to fixed laws.” Within the scope of our world, each society, country, and civilization has their own laws.
If you come to a kindergarten, a school, or some adult establishment, in each place you’ll find specific laws of communication and reward and punishment for their observance. Wherever you may end up, there will be a charter of laws for a group of people, whether a society or a nation.
But with respect to profits and losses concerning the spiritual world, your corporeal actions have no bearing on the spiritual degree. They affect the soul’s future reincarnations, but not on the Creator’s revelation to the creatures, the revelation of the spiritual world, which is described as “see your world in this life.” And, as the Torah explains, a person who has only performed corporeal actions is considered to have done nothing at all.
We study that your only free action in this world is the exertion to unify in the group; all of your other actions are not yours. We are evaluated only with respect to choosing the best environment every time so as to achieve the purpose of creation.
From Lesson 2, World Kabbalah Convention 2010, 11/9/10
I Choose But I Do Not Rule