This chapter introduces the concept of subnational debt issuances, emphasizing their significance for economic development and strengthening local democratic institutions. It delineates the political economy literature, particularly in the United States, and identifies necessary theoretical frameworks in public management to comprehend the development of bond markets in developing economies. By addressing missing causal mechanisms and advocating for citizen-voter involvement, the chapter bridges political economy and public financial management, empowering individuals in decision-making processes beyond project finances. Using Mexico as a case study, it examines the country's open economy and regulatory frameworks, illustrating the path dependency of bond market creation and democratic institution enhancement. The chapter underscores the urgency of subnational debt markets in achieving the United Nation’s Sustainable Development Goals.