And someone else explains what it's all about here:
One of the major trends in contemporary theology 30 plus years ago was the rise of liberation theology, in various forms. I suppose that makes it no longer quite so contemporary. Of all the branches of this theology, its most influential form came out of Latin and South America and involved a variety of Catholic and Protestant writers, some of whose names are still very well known-- for example Leonardo Boff (Brazil), Gustavo Guttierez (Peru), Jon Sobrino (El Salvador). This theology arose as a response to the extreme poverty of many Christians and others in these regions, and the oppressive dictatorships and regimes that kept wealth in the hands of the few, while leaving millions of residents in these countries in abject poverty.
In essence, Latin and South American liberation theology had as its major theme that God had a special concern for the poor and oppressed, which is true enough, and that the church itself should reflect God's agenda which was understood to involve "a preferential option for the poor". But this theology was not content to simply deal in depth with what the Bible has to say about poverty and wealth. It welded such materials to a Marxist liberation schema, involving political action of various sorts, and in some cases even supported Marxist guerrillas in some countries, in their opposition to the governments of the region.
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