How do you evaluate whether or not the State is Islamic?

Fatwa, posted 4.22.2010, from Lebanon, in:
Religious Authority: 
Sayyad Muhammad Hussein Fadallah
Fatwa Question or Essay Title: 
How do you evaluate whether or not the State is Islamic?
The criterion is whether a state follows the rules of Allah. Adherence to the judgment of Allah is based on knowledge of these rules through ijtihad (independent reasoning) and conclusion.
(ع).