This is the most telling sentence in this thread. Most people aren't "environmentalist types" so long as it is someone else's problem, some other countries' problem, some later generation's problem. But when the problem starts affecting their own comfort, their own health, and their own property values the "scope of the problem" magically begins "to be apparent". Unfortunately most such problems cannot be tackled economically, and many cannot be tackled at all, on a piecemeal local and reactive basis. They need national and often international education, legislation and enforcement. They will only be effectively solved when we are all "environmentalist types".
The underlying problem here is lack of education. Nothing else can be put right in this country until Dominicans generally receive adequate education and the brightest receive decent higher education. And that is two generations away.
As you can see, I became aware of the problem when it caused me personal discomfort, and have developed an interest in doing something about it - while I'm sure everyone here shares my concerns, some have tried to discourage me, essentially saying that I'm a gringo who doesn't understand the level of local apathy and antipathy to any efforts to address the issue. You're right that institutional action would probably be the most helpful, but don't neglect the potential impact of individual action; consider that you can influence two people, they each influence two people, etc., and thus, your actions are compounded exponentially.
I agree with you that education is the first step. Education about environmental waste is much easier to achieve than general education, and I'm not sure why it would take anywhere as long as two generations. Even a single concerted effort could make a big difference. As pointed out above, there also appears to be a lack of adequate resources for garbage disposal. Again, education can help with this issue, because it can create popular demand for such resources.
Incidentally, for whatever reason, I did not smell that burning smell again last night.