This is the 13500th most frequent Russian word.
народом
"Народом" means "by/with the people" in English.
In this sentence, 'народом' refers to the collective entity of 'the people', emphasizing their role in the creation of the monument, hence instrumental usage.
Этот памятник был создан народом для народа.
This monument was created by the people for the people.
Here, 'народом' is instrumental in describing the entity 'the people' as the subject of admiration abroad.
Народом нашей страны всегда гордились за рубежом.
The people of our country have always been admired abroad.
In this instance, 'народом' is used to indicate the entity 'the people' with whom interactions are taking place, portraying instrumental usage.