Movies are never accurate.
The short answer is it's as accurate as a movie is going to get, subtracting poetic license and all the dramatization of historical events.
However, in my opinion, I think it is accurate in the sense that it tells the story from the perspective of the people who are suffering mass deaths (cue the scene of piles of dead bodies), political disenfranchisment (cue the rigged elections and turbulent political shuffle), and the total media blackout on atrocities committed and the nature of the uprising (cue the main character's struggle and his friend the photographer to get the true story out of El Salvador and into the world's awareness).
As one poster said here, the things that went down in El Salvador are much worse than this movie touched upon, and the truth of the matter was that the U.S. media was spinning this event as a Communist uprising until U.S. Americans started dying. It always takes American casualties to get the media's attention. By that time tens of thousands of Salvadorans had already perished in this massacre which the U.S. funded in the millions with military personnel, money, and arms in the explicit attmept to quell the guerilla uprising from succeeding. For them, it was enough that one Latin American country had rebelled against them (Cuba) and had survived their economic embargo. They didn't want to lose anymore countries to the surge of popular uprisings in countries where the few controlled most of the wealth and the majority had little to stay alive. It would have wreaked havoc on their economic and military interests in the region.
Another thing to note that the movie does not touch upon is that in El Salvador, as well as other Latin American countries, there was a military base in the U.S. (Fort Benning?) called the School of the Americas. Most of the dictators and soldiers that took part in tortures and violence against peasant/poor uprisings had been trained in this school in order to sharpen their skills as murderers and make them more effective torturers against enemy combatants that were captured. It was rumored that ArchBishop Romero's assassin had been trained at the School of the Americas. Manuel Noriega was a student of this school, for example. The school was later renamed and it continues in operation under its new name to this day.
The scene of ArchBishop Romero's assassination also might have been poetic license. Some say he was shot from the back of the Church.
So....I guess I gave the long answer in the end. The movie is also controversial because those that were on the side of the wealthy or middle class for the most part sided with the rightness of US intervention and keeping the poor classes repressed (much like in Chile during Allende's reign; speaking of which the film Machuca is an excellent companion piece to Salvador). They viewed the peasant uprising as the desperate attempts of people who were resentful and power-hungry, or they labelled them all Communists and viewed them as puppets of a foreign, Marxist ideology. *Sarcasm* The U.S.'s role in El Salvador would never cross their minds as foreign intervention. *Sarcasm* On the other hand, the poor peasant population of El Salvador viewed the rich as elitist and the middle class as loyal subjects of the oligarchy (it was a very thin middle class). They took the Marxist ideology as their political tool for reshaping the country, but in the end what they wanted was an end to the repression from the military, more opportunites for health care and education, and overall an opportunity to feel like their voices and struggles were heard politically and economically.
So when you ask how accurate the movie is, bear these things in mind. And please, do not be one of those who watches movies to learn about history. Keep the movie in mind, but do your own research. History is not set in stone and it is very subjective.
Traveler, there is no road;
the road is made as you travel.
-Antonio Machado
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